Discounted Cash Flow (DCF) Analysis Levered

Community Health Systems, Inc. (CYH)

$5.21

-0.12 (-2.25%)

All numbers are in Millions, Currency in USD

Stock DCF: -21.29 | 5.21 | 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	15,353	14,155	13,210	11,789	12,368	11,739.56	11,143.05	10,576.85	10,039.42	9,529.30
Revenue (%)
Operating Cash Flow	773	274	385	2,178	-131	641	608.43	577.51	548.17	520.31
Operating Cash Flow (%)
Capital Expenditure	-570	-553	-451	-441	-472	-436.49	-414.31	-393.26	-373.28	-354.31
Capital Expenditure (%)
Free Cash Flow	203	-279	-66	1,737	-603	204.51	194.12	184.25	174.89	166

Weighted Average Cost Of Capital

Share price	$ 5.21
Beta	1.747
Diluted Shares Outstanding	131
Cost of Debt
Tax Rate	53.91
After-tax Cost of Debt	3.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.869
Total Debt	12,822
Total Equity	682.51
Total Capital	13,504.51
Debt Weighting	94.95
Equity Weighting	5.05
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	15,353	14,155	13,210	11,789	12,368	11,739.56	11,143.05	10,576.85	10,039.42	9,529.30
Operating Cash Flow	773	274	385	2,178	-131	641	608.43	577.51	548.17	520.31
Capital Expenditure	-570	-553	-451	-441	-472	-436.49	-414.31	-393.26	-373.28	-354.31
Free Cash Flow	203	-279	-66	1,737	-603	204.51	194.12	184.25	174.89	166
WACC
PV LFCF						197.34	180.75	165.56	151.64	138.90
SUM PV LFCF										834.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.63
Free cash flow (t + 1)	169.32
Terminal Value	10,387.93
Present Value of Terminal Value	8,691.64

Intrinsic Value

Enterprise Value	9,525.83
Net Debt	12,315
Equity Value	-2,789.17
Shares Outstanding	131
Equity Value Per Share	-21.29