Discounted Cash Flow (DCF) Analysis Levered

General Dynamics Corporation (GD)

$212.27

-1.27 (-0.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 229.08 | 212.27 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 36,19339,35037,92538,46939,40740,291.1041,195.0442,119.2643,064.2144,030.37
Revenue (%)
Operating Cash Flow 3,1482,9813,8584,2714,5793,962.094,050.984,141.874,234.794,329.80
Operating Cash Flow (%)
Capital Expenditure -690-987-967-887-1,114-974.81-996.68-1,019.04-1,041.91-1,065.28
Capital Expenditure (%)
Free Cash Flow 2,4581,9942,8913,3843,4652,987.283,054.303,122.823,192.883,264.52

Weighted Average Cost Of Capital

Share price $ 212.27
Beta 0.829
Diluted Shares Outstanding 282
Cost of Debt
Tax Rate 16.01
After-tax Cost of Debt -2.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.660
Total Debt 10,496
Total Equity 59,860.14
Total Capital 70,356.14
Debt Weighting 14.92
Equity Weighting 85.08
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 36,19339,35037,92538,46939,40740,291.1041,195.0442,119.2643,064.2144,030.37
Operating Cash Flow 3,1482,9813,8584,2714,5793,962.094,050.984,141.874,234.794,329.80
Capital Expenditure -690-987-967-887-1,114-974.81-996.68-1,019.04-1,041.91-1,065.28
Free Cash Flow 2,4581,9942,8913,3843,4652,987.283,054.303,122.823,192.883,264.52
WACC
PV LFCF 2,654.662,558.652,466.112,376.932,290.96
SUM PV LFCF 13,098.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.08
Free cash flow (t + 1) 3,329.81
Terminal Value 81,612.92
Present Value of Terminal Value 60,756.31

Intrinsic Value

Enterprise Value 73,854.34
Net Debt 9,254
Equity Value 64,600.34
Shares Outstanding 282
Equity Value Per Share 229.08