Discounted Cash Flow (DCF) Analysis Levered

KeyCorp (KEY)

$10.52

+0.22 (+2.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 92.95 | 10.52 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,2406,1826,4907,0387,0337,251.477,476.737,708.987,948.458,195.36
Revenue (%)
Operating Cash Flow 2,5062,9061,6731,1534,4692,797.212,884.102,973.693,066.063,161.30
Operating Cash Flow (%)
Capital Expenditure -99-85-63-66-108-92.90-95.79-98.76-101.83-104.99
Capital Expenditure (%)
Free Cash Flow 2,4072,8211,6101,0874,3612,704.312,788.312,874.932,964.233,056.31

Weighted Average Cost Of Capital

Share price $ 10.52
Beta 1.271
Diluted Shares Outstanding 933.06
Cost of Debt
Tax Rate 17.83
After-tax Cost of Debt 2.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.597
Total Debt 30,079
Total Equity 9,815.78
Total Capital 39,894.78
Debt Weighting 75.40
Equity Weighting 24.60
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,2406,1826,4907,0387,0337,251.477,476.737,708.987,948.458,195.36
Operating Cash Flow 2,5062,9061,6731,1534,4692,797.212,884.102,973.693,066.063,161.30
Capital Expenditure -99-85-63-66-108-92.90-95.79-98.76-101.83-104.99
Free Cash Flow 2,4072,8211,6101,0874,3612,704.312,788.312,874.932,964.233,056.31
WACC
PV LFCF 2,589.592,556.762,524.362,492.362,460.77
SUM PV LFCF 12,623.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.43
Free cash flow (t + 1) 3,117.44
Terminal Value 128,289.59
Present Value of Terminal Value 103,291.61

Intrinsic Value

Enterprise Value 115,915.45
Net Debt 29,192
Equity Value 86,723.45
Shares Outstanding 933.06
Equity Value Per Share 92.95