Discounted Cash Flow (DCF) Analysis Levered

Emerson Electric Co. (EMR)

$82.27

+1.43 (+1.77%)

All numbers are in Millions, Currency in USD

Stock DCF: 60.90 | 82.27 | overvalue

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	17,408	18,372	16,785	18,236	19,629	20,275.92	20,944.16	21,634.42	22,347.43	23,083.94
Revenue (%)
Operating Cash Flow	2,892	3,006	3,083	3,575	2,922	3,480.67	3,595.39	3,713.88	3,836.28	3,962.71
Operating Cash Flow (%)
Capital Expenditure	-617	-594	-538	-581	-531	-643.72	-664.93	-686.85	-709.48	-732.87
Capital Expenditure (%)
Free Cash Flow	2,275	2,412	2,545	2,994	2,391	2,836.96	2,930.45	3,027.03	3,126.80	3,229.85

Weighted Average Cost Of Capital

Share price	$ 82.27
Beta	1.391
Diluted Shares Outstanding	596.30
Cost of Debt
Tax Rate	20.91
After-tax Cost of Debt	1.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.049
Total Debt	10,722
Total Equity	49,057.60
Total Capital	59,779.60
Debt Weighting	17.94
Equity Weighting	82.06
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	17,408	18,372	16,785	18,236	19,629	20,275.92	20,944.16	21,634.42	22,347.43	23,083.94
Operating Cash Flow	2,892	3,006	3,083	3,575	2,922	3,480.67	3,595.39	3,713.88	3,836.28	3,962.71
Capital Expenditure	-617	-594	-538	-581	-531	-643.72	-664.93	-686.85	-709.48	-732.87
Free Cash Flow	2,275	2,412	2,545	2,994	2,391	2,836.96	2,930.45	3,027.03	3,126.80	3,229.85
WACC
PV LFCF						2,613.50	2,487	2,366.62	2,252.06	2,143.05
SUM PV LFCF										11,862.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.55
Free cash flow (t + 1)	3,294.44
Terminal Value	50,296.86
Present Value of Terminal Value	33,372.73

Intrinsic Value

Enterprise Value	45,234.96
Net Debt	8,918
Equity Value	36,316.96
Shares Outstanding	596.30
Equity Value Per Share	60.90