Discounted Cash Flow (DCF) Analysis Levered

Huntsman Corporation (HUN)

$36.16

+0.82 (+2.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 56.64 | 36.16 | undervalue

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 8,3589,3796,7976,0188,4538,742.259,041.399,350.779,670.7410,001.65
Revenue (%)
Operating Cash Flow 1,2191,207897253952981.181,014.761,049.481,085.391,122.53
Operating Cash Flow (%)
Capital Expenditure -282-313-274-249-342-330.91-342.23-353.94-366.06-378.58
Capital Expenditure (%)
Free Cash Flow 9378946234610650.27672.52695.54719.34743.95

Weighted Average Cost Of Capital

Share price $ 36.16
Beta 1.146
Diluted Shares Outstanding 221
Cost of Debt
Tax Rate 20.41
After-tax Cost of Debt 2.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.163
Total Debt 1,971
Total Equity 7,991.36
Total Capital 9,962.36
Debt Weighting 19.78
Equity Weighting 80.22
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 8,3589,3796,7976,0188,4538,742.259,041.399,350.779,670.7410,001.65
Operating Cash Flow 1,2191,207897253952981.181,014.761,049.481,085.391,122.53
Capital Expenditure -282-313-274-249-342-330.91-342.23-353.94-366.06-378.58
Free Cash Flow 9378946234610650.27672.52695.54719.34743.95
WACC
PV LFCF 607.28586.53566.49547.14528.45
SUM PV LFCF 2,835.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.08
Free cash flow (t + 1) 758.83
Terminal Value 14,937.59
Present Value of Terminal Value 10,610.57

Intrinsic Value

Enterprise Value 13,446.46
Net Debt 930
Equity Value 12,516.46
Shares Outstanding 221
Equity Value Per Share 56.64