Discounted Cash Flow (DCF) Analysis Levered
Hess Corporation (HES)
$137
-0.57 (-0.41%)
All numbers are in Millions, Currency in USD
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 | 5,466 | 6,323 | 6,495 | 4,667 | 7,473 | 8,414.20 | 9,473.93 | 10,667.14 | 12,010.63 | 13,523.32 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 945 | 1,939 | 1,642 | 1,333 | 2,890 | 2,363.89 | 2,661.61 | 2,996.83 | 3,374.27 | 3,799.25 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,937 | -2,097 | -2,829 | -2,197 | -1,747 | -3,073.05 | -3,460.09 | -3,895.88 | -4,386.55 | -4,939.02 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -992 | -158 | -1,187 | -864 | 1,143 | -709.16 | -798.48 | -899.05 | -1,012.28 | -1,139.77 |
Weighted Average Cost Of Capital
| Share price | $ 137 |
|---|---|
| Beta | 1.577 |
| Diluted Shares Outstanding | 310 |
| Cost of Debt | |
| Tax Rate | 62.48 |
| After-tax Cost of Debt | 1.97% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.068 |
| Total Debt | 9,141 |
| Total Equity | 42,470 |
| Total Capital | 51,611 |
| Debt Weighting | 17.71 |
| Equity Weighting | 82.29 |
| 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 | 5,466 | 6,323 | 6,495 | 4,667 | 7,473 | 8,414.20 | 9,473.93 | 10,667.14 | 12,010.63 | 13,523.32 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 945 | 1,939 | 1,642 | 1,333 | 2,890 | 2,363.89 | 2,661.61 | 2,996.83 | 3,374.27 | 3,799.25 |
| Capital Expenditure | -1,937 | -2,097 | -2,829 | -2,197 | -1,747 | -3,073.05 | -3,460.09 | -3,895.88 | -4,386.55 | -4,939.02 |
| Free Cash Flow | -992 | -158 | -1,187 | -864 | 1,143 | -709.16 | -798.48 | -899.05 | -1,012.28 | -1,139.77 |
| WACC | ||||||||||
| PV LFCF | -647.87 | -666.43 | -685.51 | -705.14 | -725.34 | |||||
| SUM PV LFCF | -3,430.29 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.46 |
| Free cash flow (t + 1) | -1,162.56 |
| Terminal Value | -15,583.97 |
| Present Value of Terminal Value | -9,917.47 |
Intrinsic Value
| Enterprise Value | -13,347.76 |
|---|---|
| Net Debt | 6,428 |
| Equity Value | -19,775.76 |
| Shares Outstanding | 310 |
| Equity Value Per Share | -63.79 |