Discounted Cash Flow (DCF) Analysis Levered
Devon Energy Corporation (DVN)
$50.61
+0.76 (+1.52%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 10,734 | 6,220 | 4,828 | 12,206 | 19,169 | 26,138.36 | 35,641.61 | 48,600.01 | 66,269.74 | 90,363.75 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,704 | 2,071 | 1,354 | 4,899 | 8,530 | 8,948.02 | 12,201.30 | 16,637.38 | 22,686.32 | 30,934.49 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,506 | -1,941 | -1,161 | -2,007 | -2,542 | -5,661.73 | -7,720.20 | -10,527.06 | -14,354.44 | -19,573.35 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 198 | 130 | 193 | 2,892 | 5,988 | 3,286.29 | 4,481.10 | 6,110.32 | 8,331.88 | 11,361.14 |
Weighted Average Cost Of Capital
| Share price | $ 50.61 |
|---|---|
| Beta | 2.362 |
| Diluted Shares Outstanding | 679 |
| Cost of Debt | |
| Tax Rate | 22.64 |
| After-tax Cost of Debt | 3.87% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.643 |
| Total Debt | 6,697 |
| Total Equity | 34,364.19 |
| Total Capital | 41,061.19 |
| Debt Weighting | 16.31 |
| Equity Weighting | 83.69 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 10,734 | 6,220 | 4,828 | 12,206 | 19,169 | 26,138.36 | 35,641.61 | 48,600.01 | 66,269.74 | 90,363.75 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,704 | 2,071 | 1,354 | 4,899 | 8,530 | 8,948.02 | 12,201.30 | 16,637.38 | 22,686.32 | 30,934.49 |
| Capital Expenditure | -2,506 | -1,941 | -1,161 | -2,007 | -2,542 | -5,661.73 | -7,720.20 | -10,527.06 | -14,354.44 | -19,573.35 |
| Free Cash Flow | 198 | 130 | 193 | 2,892 | 5,988 | 3,286.29 | 4,481.10 | 6,110.32 | 8,331.88 | 11,361.14 |
| WACC | ||||||||||
| PV LFCF | 2,911.06 | 3,516.20 | 4,247.15 | 5,130.04 | 6,196.47 | |||||
| SUM PV LFCF | 22,000.92 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 12.89 |
| Free cash flow (t + 1) | 11,588.36 |
| Terminal Value | 106,412.85 |
| Present Value of Terminal Value | 58,038.57 |
Intrinsic Value
| Enterprise Value | 80,039.49 |
|---|---|
| Net Debt | 5,243 |
| Equity Value | 74,796.49 |
| Shares Outstanding | 679 |
| Equity Value Per Share | 110.16 |