Discounted Cash Flow (DCF) Analysis Levered

Huntsman Corporation (HUN)

$25.09

-0.63 (-2.45%)

All numbers are in Millions, Currency in USD

Stock DCF: 56.47 | 25.09 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	6,797	6,018	8,453	8,023	8,662.54	9,353.06	10,098.63	10,903.63	11,772.79
Revenue (%)
Operating Cash Flow	897	253	952	914	867.46	936.61	1,011.27	1,091.88	1,178.91
Operating Cash Flow (%)
Capital Expenditure	-274	-249	-342	-272	-337.95	-364.88	-393.97	-425.38	-459.28
Capital Expenditure (%)
Free Cash Flow	623	4	610	642	529.51	571.72	617.29	666.50	719.63

Weighted Average Cost Of Capital

Share price	$ 25.09
Beta	1.143
Diluted Shares Outstanding	203
Cost of Debt
Tax Rate	34.00
After-tax Cost of Debt	1.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.141
Total Debt	2,124
Total Equity	5,093.27
Total Capital	7,217.27
Debt Weighting	29.43
Equity Weighting	70.57
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	6,797	6,018	8,453	8,023	8,662.54	9,353.06	10,098.63	10,903.63	11,772.79
Operating Cash Flow	897	253	952	914	867.46	936.61	1,011.27	1,091.88	1,178.91
Capital Expenditure	-274	-249	-342	-272	-337.95	-364.88	-393.97	-425.38	-459.28
Free Cash Flow	623	4	610	642	529.51	571.72	617.29	666.50	719.63
WACC
PV LFCF					377.18	380.53	383.92	387.33	390.77
SUM PV LFCF									2,518.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.02
Free cash flow (t + 1)	734.02
Terminal Value	14,621.98
Present Value of Terminal Value	10,415.53

Intrinsic Value

Enterprise Value	12,933.80
Net Debt	1,470
Equity Value	11,463.80
Shares Outstanding	203
Equity Value Per Share	56.47