Discounted Cash Flow (DCF) Analysis Levered

Dow Inc. (DOW)

$55.1

-0.47 (-0.85%)
All numbers are in Millions, Currency in USD
Stock DCF: 77.19 | 55.1 | 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 42,95138,54254,96856,90244,62246,216.2047,867.3549,577.5051,348.7453,183.27
Revenue (%)
Operating Cash Flow 5,9306,2267,0097,4755,1966,238.486,461.366,692.216,931.307,178.93
Operating Cash Flow (%)
Capital Expenditure -1,970-1,387-2,324-2,058-2,477-1,994.79-2,066.05-2,139.87-2,216.32-2,295.50
Capital Expenditure (%)
Free Cash Flow 3,9604,8394,6855,4172,7194,243.704,395.314,552.344,714.984,883.43

Weighted Average Cost Of Capital

Share price $ 55.1
Beta 1.309
Diluted Shares Outstanding 709
Cost of Debt
Tax Rate 10.21
After-tax Cost of Debt 4.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.451
Total Debt 16,447
Total Equity 39,065.90
Total Capital 55,512.90
Debt Weighting 29.63
Equity Weighting 70.37
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 42,95138,54254,96856,90244,62246,216.2047,867.3549,577.5051,348.7453,183.27
Operating Cash Flow 5,9306,2267,0097,4755,1966,238.486,461.366,692.216,931.307,178.93
Capital Expenditure -1,970-1,387-2,324-2,058-2,477-1,994.79-2,066.05-2,139.87-2,216.32-2,295.50
Free Cash Flow 3,9604,8394,6855,4172,7194,243.704,395.314,552.344,714.984,883.43
WACC
PV LFCF 3,909.083,729.493,558.163,394.693,238.74
SUM PV LFCF 17,830.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.56
Free cash flow (t + 1) 4,981.10
Terminal Value 75,931.43
Present Value of Terminal Value 50,358.46

Intrinsic Value

Enterprise Value 68,188.63
Net Debt 13,460
Equity Value 54,728.63
Shares Outstanding 709
Equity Value Per Share 77.19