Discounted Cash Flow (DCF) Analysis Levered

Harmony Gold Mining Company Limited (HMY)

$3.39

-0.05 (-1.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.99 | 3.39 | 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 21,854.3126,91229,24541,73342,64550,822.0160,566.9372,180.4086,020.70102,514.83
Revenue (%)
Operating Cash Flow 4,180.464,6794,7239,1796,9249,239.0211,010.5613,121.7915,637.8418,636.34
Operating Cash Flow (%)
Capital Expenditure -4,911.70-5,036-3,610-5,142-6,214-8,174.64-9,742.10-11,610.11-13,836.30-16,489.35
Capital Expenditure (%)
Free Cash Flow -731.24-3571,1134,0377101,064.371,268.461,511.691,801.552,146.99

Weighted Average Cost Of Capital

Share price $ 3.39
Beta 0.843
Diluted Shares Outstanding 616
Cost of Debt
Tax Rate 0.57
After-tax Cost of Debt 22.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.596
Total Debt 3,205
Total Equity 2,088.24
Total Capital 5,293.24
Debt Weighting 60.55
Equity Weighting 39.45
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 21,854.3126,91229,24541,73342,64550,822.0160,566.9372,180.4086,020.70102,514.83
Operating Cash Flow 4,180.464,6794,7239,1796,9249,239.0211,010.5613,121.7915,637.8418,636.34
Capital Expenditure -4,911.70-5,036-3,610-5,142-6,214-8,174.64-9,742.10-11,610.11-13,836.30-16,489.35
Free Cash Flow -731.24-3571,1134,0377101,064.371,268.461,511.691,801.552,146.99
WACC
PV LFCF 913.78934.92956.55978.681,001.32
SUM PV LFCF 4,785.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 16.48
Free cash flow (t + 1) 2,189.93
Terminal Value 15,123.79
Present Value of Terminal Value 7,053.49

Intrinsic Value

Enterprise Value 11,838.74
Net Debt 757
Equity Value 11,081.74
Shares Outstanding 616
Equity Value Per Share 17.99