Discounted Cash Flow (DCF) Analysis Levered

Warner Bros. Discovery, Inc. (DISCB)

$24.45

+1.43 (+6.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 181.89 | 24.45 | undervalue

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 6,87310,55311,14410,67112,19114,298.3016,769.8719,668.6623,068.5427,056.10
Revenue (%)
Operating Cash Flow 1,6292,5763,3992,7392,7983,638.384,267.315,004.945,870.086,884.77
Operating Cash Flow (%)
Capital Expenditure -135-147-289-402-373-365.39-428.55-502.63-589.51-691.41
Capital Expenditure (%)
Free Cash Flow 1,4942,4293,1102,3372,4253,2733,838.764,502.315,280.576,193.36

Weighted Average Cost Of Capital

Share price $ 24.45
Beta 1.127
Diluted Shares Outstanding 664
Cost of Debt
Tax Rate 29.80
After-tax Cost of Debt 3.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.016
Total Debt 14,759
Total Equity 16,234.80
Total Capital 30,993.80
Debt Weighting 47.62
Equity Weighting 52.38
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 6,87310,55311,14410,67112,19114,298.3016,769.8719,668.6623,068.5427,056.10
Operating Cash Flow 1,6292,5763,3992,7392,7983,638.384,267.315,004.945,870.086,884.77
Capital Expenditure -135-147-289-402-373-365.39-428.55-502.63-589.51-691.41
Free Cash Flow 1,4942,4293,1102,3372,4253,2733,838.764,502.315,280.576,193.36
WACC
PV LFCF 3,083.083,406.193,763.164,157.554,593.27
SUM PV LFCF 19,003.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.16
Free cash flow (t + 1) 6,317.22
Terminal Value 151,856.36
Present Value of Terminal Value 112,623.35

Intrinsic Value

Enterprise Value 131,626.59
Net Debt 10,854
Equity Value 120,772.59
Shares Outstanding 664
Equity Value Per Share 181.89