Discounted Cash Flow (DCF) Analysis Levered

Fluor Corporation (FLR)

$25.92

-0.63 (-2.37%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.98 | 25.92 | 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	19,520.97	19,166.60	14,348.02	15,668.48	12,434.88	11,241.43	10,162.52	9,187.17	8,305.42	7,508.30
Revenue (%)
Operating Cash Flow	601.97	162.16	219.02	185.88	25.33	153.93	139.15	125.80	113.72	102.81
Operating Cash Flow (%)
Capital Expenditure	-283.11	-211	-180.84	-113.44	-75.07	-115.55	-104.46	-94.43	-85.37	-77.17
Capital Expenditure (%)
Free Cash Flow	318.86	-48.83	38.18	72.44	-49.74	38.38	34.70	31.37	28.36	25.63

Weighted Average Cost Of Capital

Share price	$ 25.92
Beta	2.780
Diluted Shares Outstanding	141.41
Cost of Debt
Tax Rate	-244.68
After-tax Cost of Debt	7.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.881
Total Debt	1,168.28
Total Equity	3,665.40
Total Capital	4,833.68
Debt Weighting	24.17
Equity Weighting	75.83
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	19,520.97	19,166.60	14,348.02	15,668.48	12,434.88	11,241.43	10,162.52	9,187.17	8,305.42	7,508.30
Operating Cash Flow	601.97	162.16	219.02	185.88	25.33	153.93	139.15	125.80	113.72	102.81
Capital Expenditure	-283.11	-211	-180.84	-113.44	-75.07	-115.55	-104.46	-94.43	-85.37	-77.17
Free Cash Flow	318.86	-48.83	38.18	72.44	-49.74	38.38	34.70	31.37	28.36	25.63
WACC
PV LFCF						33.73	26.80	21.29	16.91	13.44
SUM PV LFCF										112.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	13.79
Free cash flow (t + 1)	26.15
Terminal Value	221.77
Present Value of Terminal Value	116.25

Intrinsic Value

Enterprise Value	228.41
Net Debt	-1,041.11
Equity Value	1,269.52
Shares Outstanding	141.41
Equity Value Per Share	8.98