Discounted Cash Flow (DCF) Analysis Levered

Chevron Corporation (CVX)

$168.12

-1.33 (-0.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 131.59 | 168.12 | overvalue

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 134,674158,902139,86594,471155,606170,492.50186,803.17204,674.24224,254.99245,709
Revenue (%)
Operating Cash Flow 20,51530,61827,31410,57729,18728,637.0831,376.7334,378.4837,667.4041,270.96
Operating Cash Flow (%)
Capital Expenditure -13,404-13,792-14,116-8,922-8,056-14,780.48-16,194.50-17,743.79-19,441.30-21,301.21
Capital Expenditure (%)
Free Cash Flow 7,11116,82613,1981,65521,13113,856.6015,182.2316,634.6918,226.0919,969.75

Weighted Average Cost Of Capital

Share price $ 168.12
Beta 1.189
Diluted Shares Outstanding 1,870.03
Cost of Debt
Tax Rate 27.79
After-tax Cost of Debt 1.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.228
Total Debt 31,369
Total Equity 314,388.94
Total Capital 345,757.94
Debt Weighting 9.07
Equity Weighting 90.93
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 134,674158,902139,86594,471155,606170,492.50186,803.17204,674.24224,254.99245,709
Operating Cash Flow 20,51530,61827,31410,57729,18728,637.0831,376.7334,378.4837,667.4041,270.96
Capital Expenditure -13,404-13,792-14,116-8,922-8,056-14,780.48-16,194.50-17,743.79-19,441.30-21,301.21
Free Cash Flow 7,11116,82613,1981,65521,13113,856.6015,182.2316,634.6918,226.0919,969.75
WACC
PV LFCF 8,474.578,554.748,635.678,717.378,799.83
SUM PV LFCF 65,050.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.54
Free cash flow (t + 1) 20,369.14
Terminal Value 311,454.76
Present Value of Terminal Value 206,750.17

Intrinsic Value

Enterprise Value 271,801.13
Net Debt 25,729
Equity Value 246,072.13
Shares Outstanding 1,870.03
Equity Value Per Share 131.59