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	8,358	9,379	6,797	6,018	8,453	8,742.25	9,041.39	9,350.77	9,670.74	10,001.65
Revenue (%)
Operating Cash Flow	1,219	1,207	897	253	952	981.18	1,014.76	1,049.48	1,085.39	1,122.53
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	937	894	623	4	610	650.27	672.52	695.54	719.34	743.95

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	8,358	9,379	6,797	6,018	8,453	8,742.25	9,041.39	9,350.77	9,670.74	10,001.65
Operating Cash Flow	1,219	1,207	897	253	952	981.18	1,014.76	1,049.48	1,085.39	1,122.53
Capital Expenditure	-282	-313	-274	-249	-342	-330.91	-342.23	-353.94	-366.06	-378.58
Free Cash Flow	937	894	623	4	610	650.27	672.52	695.54	719.34	743.95
WACC
PV LFCF						607.28	586.53	566.49	547.14	528.45
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