Discounted Cash Flow (DCF) Analysis Levered

Eastman Chemical Company (EMN)

$88.965

-1.24 (-1.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 104.86 | 88.965 | 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 9,54910,1519,2738,47310,47610,807.7611,150.0311,503.1411,867.4312,243.26
Revenue (%)
Operating Cash Flow 1,6571,5431,5041,4551,6191,759.481,815.201,872.681,931.991,993.17
Operating Cash Flow (%)
Capital Expenditure -649-528-425-383-578-575.38-593.60-612.40-631.79-651.80
Capital Expenditure (%)
Free Cash Flow 1,0081,0151,0791,0721,0411,184.101,221.601,260.281,300.201,341.37

Weighted Average Cost Of Capital

Share price $ 88.965
Beta 1.484
Diluted Shares Outstanding 136.50
Cost of Debt
Tax Rate 20.79
After-tax Cost of Debt 3.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.617
Total Debt 4,412
Total Equity 12,143.72
Total Capital 16,555.72
Debt Weighting 26.65
Equity Weighting 73.35
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 9,54910,1519,2738,47310,47610,807.7611,150.0311,503.1411,867.4312,243.26
Operating Cash Flow 1,6571,5431,5041,4551,6191,759.481,815.201,872.681,931.991,993.17
Capital Expenditure -649-528-425-383-578-575.38-593.60-612.40-631.79-651.80
Free Cash Flow 1,0081,0151,0791,0721,0411,184.101,221.601,260.281,300.201,341.37
WACC
PV LFCF 716.23679.52644.69611.65580.30
SUM PV LFCF 4,914.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.74
Free cash flow (t + 1) 1,368.20
Terminal Value 20,299.68
Present Value of Terminal Value 13,351.88

Intrinsic Value

Enterprise Value 18,266.30
Net Debt 3,953
Equity Value 14,313.30
Shares Outstanding 136.50
Equity Value Per Share 104.86