Discounted Cash Flow (DCF) Analysis Levered

General Dynamics Corporation (GD)

$222.33

+5.73 (+2.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 235.08 | 222.33 | 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 30,97336,19339,35037,92538,46940,718.3943,099.3145,619.4548,286.9551,110.42
Revenue (%)
Operating Cash Flow 3,8793,1482,9813,8584,2714,077.734,316.174,568.554,835.695,118.44
Operating Cash Flow (%)
Capital Expenditure -428-690-987-967-887-867.47-918.19-971.88-1,028.71-1,088.86
Capital Expenditure (%)
Free Cash Flow 3,4512,4581,9942,8913,3843,210.263,397.983,596.673,806.974,029.58

Weighted Average Cost Of Capital

Share price $ 222.33
Beta 0.942
Diluted Shares Outstanding 280.60
Cost of Debt
Tax Rate 15.90
After-tax Cost of Debt 2.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.573
Total Debt 13,175
Total Equity 62,385.80
Total Capital 75,560.80
Debt Weighting 17.44
Equity Weighting 82.56
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 30,97336,19339,35037,92538,46940,718.3943,099.3145,619.4548,286.9551,110.42
Operating Cash Flow 3,8793,1482,9813,8584,2714,077.734,316.174,568.554,835.695,118.44
Capital Expenditure -428-690-987-967-887-867.47-918.19-971.88-1,028.71-1,088.86
Free Cash Flow 3,4512,4581,9942,8913,3843,210.263,397.983,596.673,806.974,029.58
WACC
PV LFCF 2,818.172,794.862,771.752,748.832,726.09
SUM PV LFCF 14,792.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.73
Free cash flow (t + 1) 4,110.17
Terminal Value 86,895.75
Present Value of Terminal Value 62,743.10

Intrinsic Value

Enterprise Value 77,535.56
Net Debt 11,572
Equity Value 65,963.56
Shares Outstanding 280.60
Equity Value Per Share 235.08