Discounted Cash Flow (DCF) Analysis Levered
CMS Energy Corporation (CMS)
$69.03
+1.53 (+2.27%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 6,583 | 6,873 | 6,845 | 6,680 | 7,329 | 7,536.10 | 7,749.05 | 7,968.02 | 8,193.17 | 8,424.69 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,705 | 1,703 | 1,790 | 1,276 | 1,819 | 1,819.96 | 1,871.39 | 1,924.27 | 1,978.65 | 2,034.56 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,780 | -2,220 | -2,236 | -2,448 | -2,076 | -2,366.01 | -2,432.87 | -2,501.61 | -2,572.30 | -2,644.99 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -75 | -517 | -446 | -1,172 | -257 | -546.05 | -561.48 | -577.34 | -593.66 | -610.43 |
Weighted Average Cost Of Capital
| Share price | $ 69.03 |
|---|---|
| Beta | 0.256 |
| Diluted Shares Outstanding | 289.60 |
| Cost of Debt | |
| Tax Rate | -61.60 |
| After-tax Cost of Debt | 5.00% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.097 |
| Total Debt | 8,248 |
| Total Equity | 19,991.09 |
| Total Capital | 28,239.09 |
| Debt Weighting | 29.21 |
| Equity Weighting | 70.79 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 6,583 | 6,873 | 6,845 | 6,680 | 7,329 | 7,536.10 | 7,749.05 | 7,968.02 | 8,193.17 | 8,424.69 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,705 | 1,703 | 1,790 | 1,276 | 1,819 | 1,819.96 | 1,871.39 | 1,924.27 | 1,978.65 | 2,034.56 |
| Capital Expenditure | -1,780 | -2,220 | -2,236 | -2,448 | -2,076 | -2,366.01 | -2,432.87 | -2,501.61 | -2,572.30 | -2,644.99 |
| Free Cash Flow | -75 | -517 | -446 | -1,172 | -257 | -546.05 | -561.48 | -577.34 | -593.66 | -610.43 |
| WACC | ||||||||||
| PV LFCF | -523.23 | -515.54 | -507.96 | -500.49 | -493.14 | |||||
| SUM PV LFCF | -2,540.37 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.36 |
| Free cash flow (t + 1) | -622.64 |
| Terminal Value | -26,383.05 |
| Present Value of Terminal Value | -21,313.49 |
Intrinsic Value
| Enterprise Value | -23,853.86 |
|---|---|
| Net Debt | 7,796 |
| Equity Value | -31,649.86 |
| Shares Outstanding | 289.60 |
| Equity Value Per Share | -109.29 |