Discounted Cash Flow (DCF) Analysis Levered

The Goodyear Tire & Rubber Company (GT)

$11.18

-0.28 (-2.44%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.92 | 11.18 | 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	15,377	15,475	14,745	12,321	17,478	18,410.27	19,392.27	20,426.65	21,516.21	22,663.88
Revenue (%)
Operating Cash Flow	1,158	916	1,207	1,115	1,062	1,353.58	1,425.78	1,501.83	1,581.94	1,666.32
Operating Cash Flow (%)
Capital Expenditure	-881	-811	-770	-647	-981	-996.22	-1,049.36	-1,105.33	-1,164.29	-1,226.39
Capital Expenditure (%)
Free Cash Flow	277	105	437	468	81	357.36	376.42	396.50	417.65	439.93

Weighted Average Cost Of Capital

Share price	$ 11.18
Beta	1.847
Diluted Shares Outstanding	234
Cost of Debt
Tax Rate	-52.05
After-tax Cost of Debt	21.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.340
Total Debt	1,772
Total Equity	2,616.12
Total Capital	4,388.12
Debt Weighting	40.38
Equity Weighting	59.62
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	15,377	15,475	14,745	12,321	17,478	18,410.27	19,392.27	20,426.65	21,516.21	22,663.88
Operating Cash Flow	1,158	916	1,207	1,115	1,062	1,353.58	1,425.78	1,501.83	1,581.94	1,666.32
Capital Expenditure	-881	-811	-770	-647	-981	-996.22	-1,049.36	-1,105.33	-1,164.29	-1,226.39
Free Cash Flow	277	105	437	468	81	357.36	376.42	396.50	417.65	439.93
WACC
PV LFCF						307.59	278.88	252.84	229.24	207.84
SUM PV LFCF										1,276.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	16.18
Free cash flow (t + 1)	448.73
Terminal Value	3,164.49
Present Value of Terminal Value	1,495.02

Intrinsic Value

Enterprise Value	2,771.41
Net Debt	684
Equity Value	2,087.41
Shares Outstanding	234
Equity Value Per Share	8.92