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 15,35314,15513,21011,78912,36811,739.5611,143.0510,576.8510,039.429,529.30
Revenue (%)
Operating Cash Flow 7732743852,178-131641608.43577.51548.17520.31
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 203-279-661,737-603204.51194.12184.25174.89166

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 15,35314,15513,21011,78912,36811,739.5611,143.0510,576.8510,039.429,529.30
Operating Cash Flow 7732743852,178-131641608.43577.51548.17520.31
Capital Expenditure -570-553-451-441-472-436.49-414.31-393.26-373.28-354.31
Free Cash Flow 203-279-661,737-603204.51194.12184.25174.89166
WACC
PV LFCF 197.34180.75165.56151.64138.90
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