Discounted Cash Flow (DCF) Analysis Levered
The Goodyear Tire & Rubber Company (GT)
$12.86
-0.46 (-3.45%)
All numbers are in Millions, Currency in USD
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 | 15,475 | 14,745 | 12,321 | 17,478 | 20,805 | 22,871.66 | 25,143.62 | 27,641.26 | 30,387 | 33,405.49 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 916 | 1,207 | 1,115 | 1,062 | 521 | 1,451.67 | 1,595.87 | 1,754.39 | 1,928.67 | 2,120.25 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -811 | -770 | -647 | -981 | -1,061 | -1,208.84 | -1,328.92 | -1,460.92 | -1,606.05 | -1,765.58 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 105 | 437 | 468 | 81 | -540 | 242.83 | 266.95 | 293.47 | 322.62 | 354.67 |
Weighted Average Cost Of Capital
Share price | $ 12.86 |
---|---|
Beta | 1.798 |
Diluted Shares Outstanding | 234 |
Cost of Debt | |
Tax Rate | 49.37 |
After-tax Cost of Debt | 2.56% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 12.232 |
Total Debt | 8,910 |
Total Equity | 3,009.24 |
Total Capital | 11,919.24 |
Debt Weighting | 74.75 |
Equity Weighting | 25.25 |
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 | 15,475 | 14,745 | 12,321 | 17,478 | 20,805 | 22,871.66 | 25,143.62 | 27,641.26 | 30,387 | 33,405.49 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 916 | 1,207 | 1,115 | 1,062 | 521 | 1,451.67 | 1,595.87 | 1,754.39 | 1,928.67 | 2,120.25 |
Capital Expenditure | -811 | -770 | -647 | -981 | -1,061 | -1,208.84 | -1,328.92 | -1,460.92 | -1,606.05 | -1,765.58 |
Free Cash Flow | 105 | 437 | 468 | 81 | -540 | 242.83 | 266.95 | 293.47 | 322.62 | 354.67 |
WACC | ||||||||||
PV LFCF | 231.27 | 242.13 | 253.51 | 265.42 | 277.89 | |||||
SUM PV LFCF | 1,270.22 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.00 |
Free cash flow (t + 1) | 361.76 |
Terminal Value | 12,058.72 |
Present Value of Terminal Value | 9,448.32 |
Intrinsic Value
Enterprise Value | 10,718.54 |
---|---|
Net Debt | 7,683 |
Equity Value | 3,035.54 |
Shares Outstanding | 234 |
Equity Value Per Share | 12.97 |