Discounted Cash Flow (DCF) Analysis Levered

KeyCorp (KEY)

$11.02

+0.40 (+3.77%)

All numbers are in Millions, Currency in USD

Stock DCF: 74.09 | 11.02 | 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	6,157	6,180	6,490	7,038	7,026	7,265.99	7,514.18	7,770.84	8,036.28	8,310.78
Revenue (%)
Operating Cash Flow	2,506	2,906	1,673	1,153	4,469	2,811.82	2,907.86	3,007.18	3,109.90	3,216.13
Operating Cash Flow (%)
Capital Expenditure	-99	-85	-63	-66	-108	-93.43	-96.62	-99.92	-103.33	-106.86
Capital Expenditure (%)
Free Cash Flow	2,407	2,821	1,610	1,087	4,361	2,718.39	2,811.24	2,907.27	3,006.57	3,109.27

Weighted Average Cost Of Capital

Share price	$ 11.02
Beta	1.245
Diluted Shares Outstanding	974.81
Cost of Debt
Tax Rate	17.83
After-tax Cost of Debt	2.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.662
Total Debt	24,693
Total Equity	10,742.37
Total Capital	35,435.37
Debt Weighting	69.68
Equity Weighting	30.32
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	6,157	6,180	6,490	7,038	7,026	7,265.99	7,514.18	7,770.84	8,036.28	8,310.78
Operating Cash Flow	2,506	2,906	1,673	1,153	4,469	2,811.82	2,907.86	3,007.18	3,109.90	3,216.13
Capital Expenditure	-99	-85	-63	-66	-108	-93.43	-96.62	-99.92	-103.33	-106.86
Free Cash Flow	2,407	2,821	1,610	1,087	4,361	2,718.39	2,811.24	2,907.27	3,006.57	3,109.27
WACC
PV LFCF						2,589.44	2,550.85	2,512.84	2,475.40	2,438.52
SUM PV LFCF										12,567.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.98
Free cash flow (t + 1)	3,171.46
Terminal Value	106,424.67
Present Value of Terminal Value	83,465.97

Intrinsic Value

Enterprise Value	96,033.02
Net Debt	23,806
Equity Value	72,227.02
Shares Outstanding	974.81
Equity Value Per Share	74.09