Discounted Cash Flow (DCF) Analysis Levered

Franklin Universal Trust (FT)

$6.64

-0.18 (-2.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 698,565.05 | 6.64 | undervalue

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 24.233.7824.57-0.9431.61-212.121,423.42-9,551.7264,096.12-430,112.26
Revenue (%)
Operating Cash Flow 9.654.6510.1310.2410.83358.80-2,407.6716,156.49-108,416.93727,523.75
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----358.80-2,407.6716,156.49-108,416.93727,523.75

Weighted Average Cost Of Capital

Share price $ 6.64
Beta 0.576
Diluted Shares Outstanding 21.64
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 3.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.681
Total Debt 64.95
Total Equity 143.66
Total Capital 208.60
Debt Weighting 31.13
Equity Weighting 68.87
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 24.233.7824.57-0.9431.61-212.121,423.42-9,551.7264,096.12-430,112.26
Operating Cash Flow 9.654.6510.1310.2410.83358.80-2,407.6716,156.49-108,416.93727,523.75
Capital Expenditure ----------
Free Cash Flow -----358.80-2,407.6716,156.49-108,416.93727,523.75
WACC
PV LFCF 339.06-2,150.1113,634.64-86,462.16548,287.56
SUM PV LFCF 473,648.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.82
Free cash flow (t + 1) 742,074.23
Terminal Value 19,426,026.92
Present Value of Terminal Value 14,640,139

Intrinsic Value

Enterprise Value 15,113,787.99
Net Debt 63.53
Equity Value 15,113,724.46
Shares Outstanding 21.64
Equity Value Per Share 698,565.05