Discounted Cash Flow (DCF) Analysis Levered
CMS Energy Corporation (CMS)
$60.69
-0.29 (-0.48%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 6,873 | 6,845 | 6,680 | 7,329 | 8,596 | 9,115.74 | 9,666.90 | 10,251.39 | 10,871.22 | 11,528.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,703 | 1,790 | 1,276 | 1,819 | 994 | 1,940.07 | 2,057.37 | 2,181.77 | 2,313.68 | 2,453.57 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,220 | -2,236 | -2,448 | -2,209 | -2,239 | -2,876.94 | -3,050.89 | -3,235.35 | -3,430.97 | -3,638.42 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -517 | -446 | -1,172 | -390 | -1,245 | -936.87 | -993.52 | -1,053.59 | -1,117.29 | -1,184.85 |
Weighted Average Cost Of Capital
| Share price | $ 60.69 |
|---|---|
| Beta | 0.354 |
| Diluted Shares Outstanding | 289.50 |
| Cost of Debt | |
| Tax Rate | 8.31 |
| After-tax Cost of Debt | 0.11% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.417 |
| Total Debt | 10,287 |
| Total Equity | 17,569.76 |
| Total Capital | 27,856.76 |
| Debt Weighting | 36.93 |
| Equity Weighting | 63.07 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 6,873 | 6,845 | 6,680 | 7,329 | 8,596 | 9,115.74 | 9,666.90 | 10,251.39 | 10,871.22 | 11,528.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,703 | 1,790 | 1,276 | 1,819 | 994 | 1,940.07 | 2,057.37 | 2,181.77 | 2,313.68 | 2,453.57 |
| Capital Expenditure | -2,220 | -2,236 | -2,448 | -2,209 | -2,239 | -2,876.94 | -3,050.89 | -3,235.35 | -3,430.97 | -3,638.42 |
| Free Cash Flow | -517 | -446 | -1,172 | -390 | -1,245 | -936.87 | -993.52 | -1,053.59 | -1,117.29 | -1,184.85 |
| WACC | ||||||||||
| PV LFCF | -905.54 | -928.18 | -951.38 | -975.16 | -999.54 | |||||
| SUM PV LFCF | -4,759.80 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.46 |
| Free cash flow (t + 1) | -1,208.54 |
| Terminal Value | -82,776.96 |
| Present Value of Terminal Value | -69,830.81 |
Intrinsic Value
| Enterprise Value | -74,590.61 |
|---|---|
| Net Debt | 10,244 |
| Equity Value | -84,834.61 |
| Shares Outstanding | 289.50 |
| Equity Value Per Share | -293.04 |