Discounted Cash Flow (DCF) Analysis Levered

International Business Machines Cor... (IBM)

$135.85

-1.09 (-0.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 120.26 | 135.85 | 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 79,13979,59077,14773,62157,35153,168.7149,291.4145,696.8742,364.4539,275.05
Revenue (%)
Operating Cash Flow 16,72415,24714,77018,19712,79611,321.0510,495.479,730.109,020.538,362.72
Operating Cash Flow (%)
Capital Expenditure -3,773-3,964-2,907-3,230-2,768-2,417.05-2,240.78-2,077.38-1,925.89-1,785.44
Capital Expenditure (%)
Free Cash Flow 12,95111,28311,86314,96710,0288,904.018,254.697,652.727,094.656,577.28

Weighted Average Cost Of Capital

Share price $ 135.85
Beta 0.881
Diluted Shares Outstanding 904.64
Cost of Debt
Tax Rate -18.71
After-tax Cost of Debt 2.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.777
Total Debt 55,139
Total Equity 122,895.48
Total Capital 178,034.48
Debt Weighting 30.97
Equity Weighting 69.03
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 79,13979,59077,14773,62157,35153,168.7149,291.4145,696.8742,364.4539,275.05
Operating Cash Flow 16,72415,24714,77018,19712,79611,321.0510,495.479,730.109,020.538,362.72
Capital Expenditure -3,773-3,964-2,907-3,230-2,768-2,417.05-2,240.78-2,077.38-1,925.89-1,785.44
Free Cash Flow 12,95111,28311,86314,96710,0288,904.018,254.697,652.727,094.656,577.28
WACC
PV LFCF 6,269.875,482.594,794.174,192.193,665.79
SUM PV LFCF 32,689.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.02
Free cash flow (t + 1) 6,708.82
Terminal Value 166,886.12
Present Value of Terminal Value 124,589.43

Intrinsic Value

Enterprise Value 157,279.14
Net Debt 48,489
Equity Value 108,790.14
Shares Outstanding 904.64
Equity Value Per Share 120.26