Discounted Cash Flow (DCF) Analysis Levered
CenterPoint Energy, Inc. (CNP)
$28.95
-0.19 (-0.65%)
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 | 10,589 | 12,301 | 7,418 | 8,352 | 9,321 | 9,336.49 | 9,352.01 | 9,367.55 | 9,383.12 | 9,398.71 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,136 | 1,638 | 1,995 | 22 | 1,810 | 1,495.03 | 1,497.52 | 1,500 | 1,502.50 | 1,504.99 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,651 | -2,506 | -2,596 | -3,164 | -4,419 | -2,917.69 | -2,922.54 | -2,927.40 | -2,932.26 | -2,937.14 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 485 | -868 | -601 | -3,142 | -2,609 | -1,422.66 | -1,425.03 | -1,427.40 | -1,429.77 | -1,432.14 |
Weighted Average Cost Of Capital
| Share price | $ 28.95 |
|---|---|
| Beta | 0.884 |
| Diluted Shares Outstanding | 632 |
| Cost of Debt | |
| Tax Rate | 25.41 |
| After-tax Cost of Debt | 2.51% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.915 |
| Total Debt | 15,186 |
| Total Equity | 18,296.40 |
| Total Capital | 33,482.40 |
| Debt Weighting | 45.36 |
| Equity Weighting | 54.64 |
| 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 | 10,589 | 12,301 | 7,418 | 8,352 | 9,321 | 9,336.49 | 9,352.01 | 9,367.55 | 9,383.12 | 9,398.71 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,136 | 1,638 | 1,995 | 22 | 1,810 | 1,495.03 | 1,497.52 | 1,500 | 1,502.50 | 1,504.99 |
| Capital Expenditure | -1,651 | -2,506 | -2,596 | -3,164 | -4,419 | -2,917.69 | -2,922.54 | -2,927.40 | -2,932.26 | -2,937.14 |
| Free Cash Flow | 485 | -868 | -601 | -3,142 | -2,609 | -1,422.66 | -1,425.03 | -1,427.40 | -1,429.77 | -1,432.14 |
| WACC | ||||||||||
| PV LFCF | -1,349.01 | -1,281.29 | -1,216.97 | -1,155.88 | -1,097.86 | |||||
| SUM PV LFCF | -6,101.02 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.46 |
| Free cash flow (t + 1) | -1,460.79 |
| Terminal Value | -42,219.28 |
| Present Value of Terminal Value | -32,364.73 |
Intrinsic Value
| Enterprise Value | -38,465.75 |
|---|---|
| Net Debt | 15,112 |
| Equity Value | -53,577.75 |
| Shares Outstanding | 632 |
| Equity Value Per Share | -84.77 |