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
Stock DCF: 12.97 | 12.86 | 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 15,47514,74512,32117,47820,80522,871.6625,143.6227,641.2630,38733,405.49
Revenue (%)
Operating Cash Flow 9161,2071,1151,0625211,451.671,595.871,754.391,928.672,120.25
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 10543746881-540242.83266.95293.47322.62354.67

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 15,47514,74512,32117,47820,80522,871.6625,143.6227,641.2630,38733,405.49
Operating Cash Flow 9161,2071,1151,0625211,451.671,595.871,754.391,928.672,120.25
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 10543746881-540242.83266.95293.47322.62354.67
WACC
PV LFCF 231.27242.13253.51265.42277.89
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