Discounted Cash Flow (DCF) Analysis Levered
Eaton Corporation plc (ETN)
$133.29
-2.79 (-2.05%)
All numbers are in Millions, Currency in USD
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 | 20,404 | 21,609 | 21,390 | 17,858 | 19,628 | 19,544.16 | 19,460.67 | 19,377.55 | 19,294.77 | 19,212.35 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,666 | 2,658 | 3,451 | 2,944 | 2,163 | 2,697.32 | 2,685.80 | 2,674.33 | 2,662.90 | 2,651.53 |
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 | 2,146 | 2,093 | 2,864 | 2,555 | 1,588 | 2,188.58 | 2,179.23 | 2,169.92 | 2,160.65 | 2,151.42 |
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 | 20,404 | 21,609 | 21,390 | 17,858 | 19,628 | 19,544.16 | 19,460.67 | 19,377.55 | 19,294.77 | 19,212.35 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,666 | 2,658 | 3,451 | 2,944 | 2,163 | 2,697.32 | 2,685.80 | 2,674.33 | 2,662.90 | 2,651.53 |
Capital Expenditure | -520 | -565 | -587 | -389 | -575 | -508.74 | -506.57 | -504.41 | -502.25 | -500.11 |
Free Cash Flow | 2,146 | 2,093 | 2,864 | 2,555 | 1,588 | 2,188.58 | 2,179.23 | 2,169.92 | 2,160.65 | 2,151.42 |
WACC | ||||||||||
PV LFCF | 1,439.67 | 1,336.87 | 1,241.40 | 1,152.76 | 1,070.44 | |||||
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 |