Discounted Cash Flow (DCF) Analysis Levered
General Electric Company (GE)
$83.23
+2.09 (+2.58%)
All numbers are in Millions, Currency in USD
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 | 120,468 | 121,616 | 95,215 | 79,619 | 74,196 | 66,044.36 | 58,788.32 | 52,329.46 | 46,580.22 | 41,462.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 10,426 | 4,246 | 8,772 | 3,597 | 3,332 | 4,011.18 | 3,570.49 | 3,178.21 | 2,829.03 | 2,518.22 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -7,920 | -8,056 | -6,095 | -3,403 | -1,361 | -3,395.77 | -3,022.69 | -2,690.60 | -2,394.99 | -2,131.86 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,506 | -3,810 | 2,677 | 194 | 1,971 | 615.41 | 547.80 | 487.61 | 434.04 | 386.36 |
Weighted Average Cost Of Capital
| Share price | $ 83.23 |
|---|---|
| Beta | 1.261 |
| Diluted Shares Outstanding | 1,098 |
| Cost of Debt | |
| Tax Rate | -77.03 |
| After-tax Cost of Debt | 4.93% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.471 |
| Total Debt | 38,032 |
| Total Equity | 91,386.54 |
| Total Capital | 129,418.54 |
| Debt Weighting | 29.39 |
| Equity Weighting | 70.61 |
| 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 | 120,468 | 121,616 | 95,215 | 79,619 | 74,196 | 66,044.36 | 58,788.32 | 52,329.46 | 46,580.22 | 41,462.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 10,426 | 4,246 | 8,772 | 3,597 | 3,332 | 4,011.18 | 3,570.49 | 3,178.21 | 2,829.03 | 2,518.22 |
| Capital Expenditure | -7,920 | -8,056 | -6,095 | -3,403 | -1,361 | -3,395.77 | -3,022.69 | -2,690.60 | -2,394.99 | -2,131.86 |
| Free Cash Flow | 2,506 | -3,810 | 2,677 | 194 | 1,971 | 615.41 | 547.80 | 487.61 | 434.04 | 386.36 |
| WACC | ||||||||||
| PV LFCF | 486.64 | 400.57 | 329.72 | 271.40 | 223.40 | |||||
| SUM PV LFCF | 2,001.74 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.14 |
| Free cash flow (t + 1) | 394.08 |
| Terminal Value | 6,418.28 |
| Present Value of Terminal Value | 4,339.97 |
Intrinsic Value
| Enterprise Value | 6,341.71 |
|---|---|
| Net Debt | 22,262 |
| Equity Value | -15,920.29 |
| Shares Outstanding | 1,098 |
| Equity Value Per Share | -14.50 |