Discounted Cash Flow (DCF) Analysis Levered

Halliburton Company (HAL)

$30.46

-1.48 (-4.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 6.19 | 30.46 | overvalue

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 23,99522,40814,44515,29520,29720,116.2319,937.0819,759.5219,583.5419,409.13
Revenue (%)
Operating Cash Flow 3,1572,4451,8811,9112,2422,439.302,417.582,396.052,374.712,353.56
Operating Cash Flow (%)
Capital Expenditure -2,026-1,530-728-799-1,011-1,227.74-1,216.80-1,205.97-1,195.23-1,184.58
Capital Expenditure (%)
Free Cash Flow 1,1319151,1531,1121,2311,211.571,200.781,190.081,179.481,168.98

Weighted Average Cost Of Capital

Share price $ 30.46
Beta 2.140
Diluted Shares Outstanding 908
Cost of Debt
Tax Rate 25.50
After-tax Cost of Debt 3.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.601
Total Debt 8,943
Total Equity 27,657.68
Total Capital 36,600.68
Debt Weighting 24.43
Equity Weighting 75.57
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 23,99522,40814,44515,29520,29720,116.2319,937.0819,759.5219,583.5419,409.13
Operating Cash Flow 3,1572,4451,8811,9112,2422,439.302,417.582,396.052,374.712,353.56
Capital Expenditure -2,026-1,530-728-799-1,011-1,227.74-1,216.80-1,205.97-1,195.23-1,184.58
Free Cash Flow 1,1319151,1531,1121,2311,211.571,200.781,190.081,179.481,168.98
WACC
PV LFCF 1,091.11973.87869.24775.84692.48
SUM PV LFCF 4,402.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.04
Free cash flow (t + 1) 1,192.36
Terminal Value 13,189.80
Present Value of Terminal Value 7,813.42

Intrinsic Value

Enterprise Value 12,215.96
Net Debt 6,597
Equity Value 5,618.96
Shares Outstanding 908
Equity Value Per Share 6.19