Discounted Cash Flow (DCF) Analysis Levered
KeyCorp (KEY)
$17.83
+0.83 (+4.88%)
All numbers are in Millions, Currency in USD
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 | 6,063 | 6,157 | 6,180 | 6,490 | 7,038 | 7,308.68 | 7,589.77 | 7,881.67 | 8,184.80 | 8,499.58 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,815 | 2,506 | 2,906 | 1,673 | 1,153 | 2,336.15 | 2,426 | 2,519.31 | 2,616.20 | 2,716.82 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -112 | -99 | -85 | -63 | -66 | -98.51 | -102.30 | -106.23 | -110.32 | -114.56 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,703 | 2,407 | 2,821 | 1,610 | 1,087 | 2,237.65 | 2,323.71 | 2,413.08 | 2,505.88 | 2,602.26 |
Weighted Average Cost Of Capital
Share price | $ 17.83 |
---|---|
Beta | 1.331 |
Diluted Shares Outstanding | 974.81 |
Cost of Debt | |
Tax Rate | 19.33 |
After-tax Cost of Debt | 1.89% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.408 |
Total Debt | 12,630 |
Total Equity | 17,380.81 |
Total Capital | 30,010.81 |
Debt Weighting | 42.08 |
Equity Weighting | 57.92 |
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 | 6,063 | 6,157 | 6,180 | 6,490 | 7,038 | 7,308.68 | 7,589.77 | 7,881.67 | 8,184.80 | 8,499.58 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,815 | 2,506 | 2,906 | 1,673 | 1,153 | 2,336.15 | 2,426 | 2,519.31 | 2,616.20 | 2,716.82 |
Capital Expenditure | -112 | -99 | -85 | -63 | -66 | -98.51 | -102.30 | -106.23 | -110.32 | -114.56 |
Free Cash Flow | 1,703 | 2,407 | 2,821 | 1,610 | 1,087 | 2,237.65 | 2,323.71 | 2,413.08 | 2,505.88 | 2,602.26 |
WACC | ||||||||||
PV LFCF | 1,556.19 | 1,521.12 | 1,486.85 | 1,453.34 | 1,420.59 | |||||
SUM PV LFCF | 10,067.05 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.24 |
Free cash flow (t + 1) | 2,654.30 |
Terminal Value | 62,601.47 |
Present Value of Terminal Value | 46,253.46 |
Intrinsic Value
Enterprise Value | 56,320.51 |
---|---|
Net Debt | 11,717 |
Equity Value | 44,603.51 |
Shares Outstanding | 974.81 |
Equity Value Per Share | 45.76 |