Discounted Cash Flow (DCF) Analysis Levered

Halliburton Company (HAL)

$40.34

-0.18 (-0.44%)

All numbers are in Millions, Currency in USD

Stock DCF: -0.18 | 40.34 | 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	20,620	23,995	22,408	14,445	15,295	14,534.14	13,811.13	13,124.08	12,471.21	11,850.82
Revenue (%)
Operating Cash Flow	2,468	3,157	2,445	1,881	1,911	1,789.25	1,700.24	1,615.66	1,535.29	1,458.91
Operating Cash Flow (%)
Capital Expenditure	-1,373	-2,026	-1,530	-728	-799	-935.81	-889.26	-845.02	-802.99	-763.04
Capital Expenditure (%)
Free Cash Flow	1,095	1,131	915	1,153	1,112	853.43	810.98	770.63	732.30	695.87

Weighted Average Cost Of Capital

Share price	$ 40.34
Beta	2.167
Diluted Shares Outstanding	894
Cost of Debt
Tax Rate	-16.37
After-tax Cost of Debt	4.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.778
Total Debt	10,219
Total Equity	36,063.96
Total Capital	46,282.96
Debt Weighting	22.08
Equity Weighting	77.92
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	20,620	23,995	22,408	14,445	15,295	14,534.14	13,811.13	13,124.08	12,471.21	11,850.82
Operating Cash Flow	2,468	3,157	2,445	1,881	1,911	1,789.25	1,700.24	1,615.66	1,535.29	1,458.91
Capital Expenditure	-1,373	-2,026	-1,530	-728	-799	-935.81	-889.26	-845.02	-802.99	-763.04
Free Cash Flow	1,095	1,131	915	1,153	1,112	853.43	810.98	770.63	732.30	695.87
WACC
PV LFCF						763.70	649.40	552.21	469.57	399.29
SUM PV LFCF										2,834.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.75
Free cash flow (t + 1)	709.79
Terminal Value	7,279.87
Present Value of Terminal Value	4,177.21

Intrinsic Value

Enterprise Value	7,011.38
Net Debt	7,175
Equity Value	-163.62
Shares Outstanding	894
Equity Value Per Share	-0.18