Discounted Cash Flow (DCF) Analysis Levered

The Kraft Heinz Company (KHC)

$38.04

+0.10 (+0.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 42.87 | 38.04 | 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	26,268	24,977	26,185	26,042	26,485	26,556.29	26,627.78	26,699.45	26,771.32	26,843.38
Revenue (%)
Operating Cash Flow	2,574	3,552	4,929	5,364	2,469	3,864.66	3,875.06	3,885.50	3,895.95	3,906.44
Operating Cash Flow (%)
Capital Expenditure	-826	-768	-596	-905	-916	-819.48	-821.69	-823.90	-826.12	-828.34
Capital Expenditure (%)
Free Cash Flow	1,748	2,784	4,333	4,459	1,553	3,045.18	3,053.38	3,061.59	3,069.84	3,078.10

Weighted Average Cost Of Capital

Share price	$ 38.04
Beta	0.703
Diluted Shares Outstanding	1,236
Cost of Debt
Tax Rate	20.33
After-tax Cost of Debt	3.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.924
Total Debt	19,239
Total Equity	47,017.44
Total Capital	66,256.44
Debt Weighting	29.04
Equity Weighting	70.96
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	26,268	24,977	26,185	26,042	26,485	26,556.29	26,627.78	26,699.45	26,771.32	26,843.38
Operating Cash Flow	2,574	3,552	4,929	5,364	2,469	3,864.66	3,875.06	3,885.50	3,895.95	3,906.44
Capital Expenditure	-826	-768	-596	-905	-916	-819.48	-821.69	-823.90	-826.12	-828.34
Free Cash Flow	1,748	2,784	4,333	4,459	1,553	3,045.18	3,053.38	3,061.59	3,069.84	3,078.10
WACC
PV LFCF						2,144.30	2,027.99	1,917.99	1,813.95	1,715.55
SUM PV LFCF										12,885.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.02
Free cash flow (t + 1)	3,139.66
Terminal Value	78,101.02
Present Value of Terminal Value	58,306.60

Intrinsic Value

Enterprise Value	71,192.19
Net Debt	18,199
Equity Value	52,993.19
Shares Outstanding	1,236
Equity Value Per Share	42.87