Discounted Cash Flow (DCF) Analysis Levered

Helmerich & Payne, Inc. (HP)

$51.69

+0.21 (+0.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 8.33 | 51.69 | 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 1,804.742,487.272,798.491,773.931,218.571,164.991,113.771,064.801,017.98973.23
Revenue (%)
Operating Cash Flow 357.22544.53855.75538.88136.44265.24253.58242.43231.77221.58
Operating Cash Flow (%)
Capital Expenditure -397.57-466.58-458.40-140.80-82.15-167.40-160.04-153-146.28-139.85
Capital Expenditure (%)
Free Cash Flow -40.3577.95397.35398.0954.2997.8493.5489.4385.5081.74

Weighted Average Cost Of Capital

Share price $ 51.69
Beta 1.744
Diluted Shares Outstanding 107.82
Cost of Debt
Tax Rate 26.07
After-tax Cost of Debt 1.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.976
Total Debt 1,075.97
Total Equity 5,573.11
Total Capital 6,649.08
Debt Weighting 16.18
Equity Weighting 83.82
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 1,804.742,487.272,798.491,773.931,218.571,164.991,113.771,064.801,017.98973.23
Operating Cash Flow 357.22544.53855.75538.88136.44265.24253.58242.43231.77221.58
Capital Expenditure -397.57-466.58-458.40-140.80-82.15-167.40-160.04-153-146.28-139.85
Free Cash Flow -40.3577.95397.35398.0954.2997.8493.5489.4385.5081.74
WACC
PV LFCF 89.3878.0668.1759.5351.99
SUM PV LFCF 347.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.47
Free cash flow (t + 1) 83.37
Terminal Value 1,116.10
Present Value of Terminal Value 709.95

Intrinsic Value

Enterprise Value 1,057.08
Net Debt 158.44
Equity Value 898.64
Shares Outstanding 107.82
Equity Value Per Share 8.33