Discounted Cash Flow (DCF) Analysis Levered

General Electric Company (GE)

$84.66

-2.22 (-2.56%)
All numbers are in Millions, Currency in USD
Stock DCF: -14.43 | 84.66 | 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 120,468121,61695,21579,61974,19666,044.3658,788.3252,329.4646,580.2241,462.63
Revenue (%)
Operating Cash Flow 10,4264,2468,7723,5973,3324,011.183,570.493,178.212,829.032,518.22
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 2,506-3,8102,6771941,971615.41547.80487.61434.04386.36

Weighted Average Cost Of Capital

Share price $ 84.66
Beta 1.218
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 9.346
Total Debt 38,032
Total Equity 92,956.68
Total Capital 130,988.68
Debt Weighting 29.03
Equity Weighting 70.97
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 120,468121,61695,21579,61974,19666,044.3658,788.3252,329.4646,580.2241,462.63
Operating Cash Flow 10,4264,2468,7723,5973,3324,011.183,570.493,178.212,829.032,518.22
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 2,506-3,8102,6771941,971615.41547.80487.61434.04386.36
WACC
PV LFCF 569.51469.13386.44318.33262.22
SUM PV LFCF 2,005.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.06
Free cash flow (t + 1) 394.08
Terminal Value 6,503.01
Present Value of Terminal Value 4,413.57

Intrinsic Value

Enterprise Value 6,419.19
Net Debt 22,262
Equity Value -15,842.81
Shares Outstanding 1,098
Equity Value Per Share -14.43