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 6,1576,1806,4907,0387,0267,265.997,514.187,770.848,036.288,310.78
Revenue (%)
Operating Cash Flow 2,5062,9061,6731,1534,4692,811.822,907.863,007.183,109.903,216.13
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 2,4072,8211,6101,0874,3612,718.392,811.242,907.273,006.573,109.27

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 6,1576,1806,4907,0387,0267,265.997,514.187,770.848,036.288,310.78
Operating Cash Flow 2,5062,9061,6731,1534,4692,811.822,907.863,007.183,109.903,216.13
Capital Expenditure -99-85-63-66-108-93.43-96.62-99.92-103.33-106.86
Free Cash Flow 2,4072,8211,6101,0874,3612,718.392,811.242,907.273,006.573,109.27
WACC
PV LFCF 2,589.442,550.852,512.842,475.402,438.52
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