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 4,1714,9135,6395,7677,3398,478.299,794.4411,314.9113,071.4015,100.58
Revenue (%)
Operating Cash Flow 193165256367278384.53444.22513.18592.85684.88
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 185148236347241354.97410.07473.73547.27632.22

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 4,1714,9135,6395,7677,3398,478.299,794.4411,314.9113,071.4015,100.58
Operating Cash Flow 193165256367278384.53444.22513.18592.85684.88
Capital Expenditure -8-17-20-20-37-29.56-34.15-39.45-45.58-52.65
Free Cash Flow 185148236347241354.97410.07473.73547.27632.22
WACC
PV LFCF 331.87358.44387.14418.13451.61
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