Discounted Cash Flow (DCF) Analysis Levered

Warner Bros. Discovery, Inc. (DISCK)

$24.42

+1.34 (+5.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 387.38 | 24.42 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 11,14410,67112,19133,81741,32162,971.4495,965.80146,247.79222,875.40339,652.61
Revenue (%)
Operating Cash Flow 3,3992,7392,7984,3047,47713,846.4121,101.3532,157.5549,006.7474,684.19
Operating Cash Flow (%)
Capital Expenditure -289-402-373-987-1,316-1,955.09-2,979.48-4,540.60-6,919.68-10,545.30
Capital Expenditure (%)
Free Cash Flow 3,1102,3372,4253,3176,16111,891.3218,121.8727,616.9542,087.0664,138.89

Weighted Average Cost Of Capital

Share price $ 24.42
Beta 1.127
Diluted Shares Outstanding 2,436
Cost of Debt
Tax Rate -20.30
After-tax Cost of Debt 4.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.604
Total Debt 43,669
Total Equity 59,487.12
Total Capital 103,156.12
Debt Weighting 42.33
Equity Weighting 57.67
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 11,14410,67112,19133,81741,32162,971.4495,965.80146,247.79222,875.40339,652.61
Operating Cash Flow 3,3992,7392,7984,3047,47713,846.4121,101.3532,157.5549,006.7474,684.19
Capital Expenditure -289-402-373-987-1,316-1,955.09-2,979.48-4,540.60-6,919.68-10,545.30
Free Cash Flow 3,1102,3372,4253,3176,16111,891.3218,121.8727,616.9542,087.0664,138.89
WACC
PV LFCF 7,769.9411,030.3315,658.8322,229.5231,557.38
SUM PV LFCF 125,807.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.35
Free cash flow (t + 1) 65,421.67
Terminal Value 1,222,834.89
Present Value of Terminal Value 857,743.78

Intrinsic Value

Enterprise Value 983,550.93
Net Debt 39,889
Equity Value 943,661.93
Shares Outstanding 2,436
Equity Value Per Share 387.38