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	6,240	6,182	6,490	7,038	7,033	7,251.47	7,476.73	7,708.98	7,948.45	8,195.36
Revenue (%)
Operating Cash Flow	2,506	2,906	1,673	1,153	4,469	2,797.21	2,884.10	2,973.69	3,066.06	3,161.30
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	2,407	2,821	1,610	1,087	4,361	2,704.31	2,788.31	2,874.93	2,964.23	3,056.31

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	6,240	6,182	6,490	7,038	7,033	7,251.47	7,476.73	7,708.98	7,948.45	8,195.36
Operating Cash Flow	2,506	2,906	1,673	1,153	4,469	2,797.21	2,884.10	2,973.69	3,066.06	3,161.30
Capital Expenditure	-99	-85	-63	-66	-108	-92.90	-95.79	-98.76	-101.83	-104.99
Free Cash Flow	2,407	2,821	1,610	1,087	4,361	2,704.31	2,788.31	2,874.93	2,964.23	3,056.31
WACC
PV LFCF						2,589.59	2,556.76	2,524.36	2,492.36	2,460.77
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