Discounted Cash Flow (DCF) Analysis Levered

Eaton Corporation plc (ETN)

$133.29

-2.79 (-2.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 74.17 | 133.29 | overvalue

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 20,40421,60921,39017,85819,62819,544.1619,460.6719,377.5519,294.7719,212.35
Revenue (%)
Operating Cash Flow 2,6662,6583,4512,9442,1632,697.322,685.802,674.332,662.902,651.53
Operating Cash Flow (%)
Capital Expenditure -520-565-587-389-575-508.74-506.57-504.41-502.25-500.11
Capital Expenditure (%)
Free Cash Flow 2,1462,0932,8642,5551,5882,188.582,179.232,169.922,160.652,151.42

Weighted Average Cost Of Capital

Share price $ 133.29
Beta 1.153
Diluted Shares Outstanding 402.10
Cost of Debt
Tax Rate 25.97
After-tax Cost of Debt 1.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.235
Total Debt 8,916
Total Equity 53,595.91
Total Capital 62,511.91
Debt Weighting 14.26
Equity Weighting 85.74
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 20,40421,60921,39017,85819,62819,544.1619,460.6719,377.5519,294.7719,212.35
Operating Cash Flow 2,6662,6583,4512,9442,1632,697.322,685.802,674.332,662.902,651.53
Capital Expenditure -520-565-587-389-575-508.74-506.57-504.41-502.25-500.11
Free Cash Flow 2,1462,0932,8642,5551,5882,188.582,179.232,169.922,160.652,151.42
WACC
PV LFCF 1,439.671,336.871,241.401,152.761,070.44
SUM PV LFCF 8,848.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.23
Free cash flow (t + 1) 2,194.45
Terminal Value 41,958.87
Present Value of Terminal Value 29,596.63

Intrinsic Value

Enterprise Value 38,444.64
Net Debt 8,619
Equity Value 29,825.64
Shares Outstanding 402.10
Equity Value Per Share 74.17