Discounted Cash Flow (DCF) Analysis Levered

KeyCorp (KEY)

$19.52

+0.47 (+2.47%)
All numbers are in Millions, Currency in USD
Stock DCF: 46.87 | 19.52 | 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 6,0636,1576,1806,4907,0387,308.687,589.777,881.678,184.808,499.58
Revenue (%)
Operating Cash Flow 1,8152,5062,9061,6731,1532,336.152,4262,519.312,616.202,716.82
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 1,7032,4072,8211,6101,0872,237.652,323.712,413.082,505.882,602.26

Weighted Average Cost Of Capital

Share price $ 19.52
Beta 1.323
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 8.991
Total Debt 12,630
Total Equity 19,028.23
Total Capital 31,658.23
Debt Weighting 39.89
Equity Weighting 60.11
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 6,0636,1576,1806,4907,0387,308.687,589.777,881.678,184.808,499.58
Operating Cash Flow 1,8152,5062,9061,6731,1532,336.152,4262,519.312,616.202,716.82
Capital Expenditure -112-99-85-63-66-98.51-102.30-106.23-110.32-114.56
Free Cash Flow 1,7032,4072,8211,6101,0872,237.652,323.712,413.082,505.882,602.26
WACC
PV LFCF 1,761.761,723.361,685.801,649.051,613.11
SUM PV LFCF 10,089.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.16
Free cash flow (t + 1) 2,654.30
Terminal Value 63,805.35
Present Value of Terminal Value 47,320.85

Intrinsic Value

Enterprise Value 57,410.34
Net Debt 11,717
Equity Value 45,693.34
Shares Outstanding 974.81
Equity Value Per Share 46.87