Discounted Cash Flow (DCF) Analysis Levered

KBR, Inc. (KBR)

$52.27

-0.07 (-0.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 65.55 | 52.27 | 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	4,171	4,913	5,639	5,767	7,339	8,478.29	9,794.44	11,314.91	13,071.40	15,100.58
Revenue (%)
Operating Cash Flow	193	165	256	367	278	384.53	444.22	513.18	592.85	684.88
Operating Cash Flow (%)
Capital Expenditure	-8	-17	-20	-20	-37	-29.56	-34.15	-39.45	-45.58	-52.65
Capital Expenditure (%)
Free Cash Flow	185	148	236	347	241	354.97	410.07	473.73	547.27	632.22

Weighted Average Cost Of Capital

Share price	$ 52.27
Beta	1.237
Diluted Shares Outstanding	145
Cost of Debt
Tax Rate	86.57
After-tax Cost of Debt	0.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.721
Total Debt	2,099
Total Equity	7,579.15
Total Capital	9,678.15
Debt Weighting	21.69
Equity Weighting	78.31
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	4,171	4,913	5,639	5,767	7,339	8,478.29	9,794.44	11,314.91	13,071.40	15,100.58
Operating Cash Flow	193	165	256	367	278	384.53	444.22	513.18	592.85	684.88
Capital Expenditure	-8	-17	-20	-20	-37	-29.56	-34.15	-39.45	-45.58	-52.65
Free Cash Flow	185	148	236	347	241	354.97	410.07	473.73	547.27	632.22
WACC
PV LFCF						331.87	358.44	387.14	418.13	451.61
SUM PV LFCF										1,947.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.96
Free cash flow (t + 1)	644.87
Terminal Value	13,001.38
Present Value of Terminal Value	9,287.15

Intrinsic Value

Enterprise Value	11,234.33
Net Debt	1,729
Equity Value	9,505.33
Shares Outstanding	145
Equity Value Per Share	65.55