Discounted Cash Flow (DCF) Analysis Levered
Eaton Corporation plc (ETN)
$210.735
+0.49 (+0.24%)
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 | 21,609 | 21,390 | 17,858 | 19,628 | 20,752 | 20,654.06 | 20,556.58 | 20,459.56 | 20,363 | 20,266.90 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,658 | 3,451 | 2,944 | 2,163 | 2,533 | 2,814.97 | 2,801.69 | 2,788.47 | 2,775.31 | 2,762.21 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -565 | -587 | -389 | -575 | -598 | -551.40 | -548.79 | -546.20 | -543.63 | -541.06 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 2,093 | 2,864 | 2,555 | 1,588 | 1,935 | 2,263.58 | 2,252.89 | 2,242.26 | 2,231.68 | 2,221.15 |
Weighted Average Cost Of Capital
Share price | $ 210.735 |
---|---|
Beta | 1.106 |
Diluted Shares Outstanding | 400.80 |
Cost of Debt | |
Tax Rate | 15.42 |
After-tax Cost of Debt | 1.34% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.941 |
Total Debt | 9,114 |
Total Equity | 84,462.59 |
Total Capital | 93,576.59 |
Debt Weighting | 9.74 |
Equity Weighting | 90.26 |
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 | 21,609 | 21,390 | 17,858 | 19,628 | 20,752 | 20,654.06 | 20,556.58 | 20,459.56 | 20,363 | 20,266.90 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,658 | 3,451 | 2,944 | 2,163 | 2,533 | 2,814.97 | 2,801.69 | 2,788.47 | 2,775.31 | 2,762.21 |
Capital Expenditure | -565 | -587 | -389 | -575 | -598 | -551.40 | -548.79 | -546.20 | -543.63 | -541.06 |
Free Cash Flow | 2,093 | 2,864 | 2,555 | 1,588 | 1,935 | 2,263.58 | 2,252.89 | 2,242.26 | 2,231.68 | 2,221.15 |
WACC | ||||||||||
PV LFCF | 2,074.77 | 1,892.74 | 1,726.68 | 1,575.19 | 1,436.99 | |||||
SUM PV LFCF | 8,706.38 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 9.10 |
Free cash flow (t + 1) | 2,265.57 |
Terminal Value | 31,909.44 |
Present Value of Terminal Value | 20,644.07 |
Intrinsic Value
Enterprise Value | 29,350.45 |
---|---|
Net Debt | 8,820 |
Equity Value | 20,530.45 |
Shares Outstanding | 400.80 |
Equity Value Per Share | 51.22 |