Discounted Cash Flow (DCF) Analysis Levered

GATX Corporation (GATX)

$103.12

+0.47 (+0.46%)
All numbers are in Millions, Currency in USD
Stock DCF: -554.33 | 103.12 | 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 1,376.901,360.901,393.801,209.201,257.401,232.241,207.591,183.431,159.751,136.55
Revenue (%)
Operating Cash Flow 496.80508.50462.60428.30507.20449.51440.51431.70423.06414.60
Operating Cash Flow (%)
Capital Expenditure -678.60-995.90-742.70-860.80-1,130.10-830.07-813.47-797.19-781.24-765.61
Capital Expenditure (%)
Free Cash Flow -181.80-487.40-280.10-432.50-622.90-380.57-372.95-365.49-358.18-351.01

Weighted Average Cost Of Capital

Share price $ 103.12
Beta 0.996
Diluted Shares Outstanding 36
Cost of Debt
Tax Rate 26.65
After-tax Cost of Debt 2.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.492
Total Debt 6,193.30
Total Equity 3,712.32
Total Capital 9,905.62
Debt Weighting 62.52
Equity Weighting 37.48
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 1,376.901,360.901,393.801,209.201,257.401,232.241,207.591,183.431,159.751,136.55
Operating Cash Flow 496.80508.50462.60428.30507.20449.51440.51431.70423.06414.60
Capital Expenditure -678.60-995.90-742.70-860.80-1,130.10-830.07-813.47-797.19-781.24-765.61
Free Cash Flow -181.80-487.40-280.10-432.50-622.90-380.57-372.95-365.49-358.18-351.01
WACC
PV LFCF -295.27-277.38-260.58-244.79-229.96
SUM PV LFCF -1,615.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.32
Free cash flow (t + 1) -358.03
Terminal Value -15,432.47
Present Value of Terminal Value -12,491.01

Intrinsic Value

Enterprise Value -14,107
Net Debt 5,849
Equity Value -19,956
Shares Outstanding 36
Equity Value Per Share -554.33