Discounted Cash Flow (DCF) Analysis Levered

Freeport-McMoRan Inc. (FCX)

$38.35

+2.04 (+5.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.49 | 38.35 | 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 16,40318,62814,40214,19822,84525,721.4628,960.1032,606.5236,712.0741,334.56
Revenue (%)
Operating Cash Flow 4,6823,8631,4823,0177,7155,894.946,637.197,472.898,413.819,473.21
Operating Cash Flow (%)
Capital Expenditure -1,410-1,971-2,652-1,961-2,115-3,120.57-3,513.48-3,955.87-4,453.97-5,014.77
Capital Expenditure (%)
Free Cash Flow 3,2721,892-1,1701,0565,6002,774.383,123.703,517.013,959.854,458.44

Weighted Average Cost Of Capital

Share price $ 38.35
Beta 2.018
Diluted Shares Outstanding 1,482
Cost of Debt
Tax Rate 43.78
After-tax Cost of Debt 3.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.385
Total Debt 9,769
Total Equity 56,834.70
Total Capital 66,603.70
Debt Weighting 14.67
Equity Weighting 85.33
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 16,40318,62814,40214,19822,84525,721.4628,960.1032,606.5236,712.0741,334.56
Operating Cash Flow 4,6823,8631,4823,0177,7155,894.946,637.197,472.898,413.819,473.21
Capital Expenditure -1,410-1,971-2,652-1,961-2,115-3,120.57-3,513.48-3,955.87-4,453.97-5,014.77
Free Cash Flow 3,2721,892-1,1701,0565,6002,774.383,123.703,517.013,959.854,458.44
WACC
PV LFCF 2,248.502,279.092,310.102,341.532,373.38
SUM PV LFCF 12,832.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.08
Free cash flow (t + 1) 4,547.61
Terminal Value 50,083.80
Present Value of Terminal Value 29,615.42

Intrinsic Value

Enterprise Value 42,448.06
Net Debt 1,701
Equity Value 40,747.06
Shares Outstanding 1,482
Equity Value Per Share 27.49