Discounted Cash Flow (DCF) Analysis Levered
The Kraft Heinz Company (KHC)
$33.64
-0.11 (-0.33%)
All numbers are in Millions, Currency in USD
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 | 26,259 | 24,977 | 26,185 | 26,042 | 26,485 | 26,558.45 | 26,632.10 | 26,705.96 | 26,780.02 | 26,854.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,574 | 3,552 | 4,929 | 5,364 | 2,469 | 3,865.15 | 3,875.87 | 3,886.62 | 3,897.40 | 3,908.21 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -826 | -768 | -596 | -905 | -916 | -819.61 | -821.88 | -824.16 | -826.44 | -828.74 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,748 | 2,784 | 4,333 | 4,459 | 1,553 | 3,045.55 | 3,053.99 | 3,062.46 | 3,070.96 | 3,079.47 |
Weighted Average Cost Of Capital
| Share price | $ 33.64 |
|---|---|
| Beta | 0.681 |
| Diluted Shares Outstanding | 1,235 |
| Cost of Debt | |
| Tax Rate | 20.33 |
| After-tax Cost of Debt | 3.66% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.787 |
| Total Debt | 20,070 |
| Total Equity | 41,545.40 |
| Total Capital | 61,615.40 |
| Debt Weighting | 32.57 |
| Equity Weighting | 67.43 |
| 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 | 26,259 | 24,977 | 26,185 | 26,042 | 26,485 | 26,558.45 | 26,632.10 | 26,705.96 | 26,780.02 | 26,854.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,574 | 3,552 | 4,929 | 5,364 | 2,469 | 3,865.15 | 3,875.87 | 3,886.62 | 3,897.40 | 3,908.21 |
| Capital Expenditure | -826 | -768 | -596 | -905 | -916 | -819.61 | -821.88 | -824.16 | -826.44 | -828.74 |
| Free Cash Flow | 1,748 | 2,784 | 4,333 | 4,459 | 1,553 | 3,045.55 | 3,053.99 | 3,062.46 | 3,070.96 | 3,079.47 |
| WACC | ||||||||||
| PV LFCF | 2,229.16 | 2,100.10 | 1,978.50 | 1,863.95 | 1,756.03 | |||||
| SUM PV LFCF | 12,742.95 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.44 |
| Free cash flow (t + 1) | 3,141.06 |
| Terminal Value | 70,744.64 |
| Present Value of Terminal Value | 51,780.86 |
Intrinsic Value
| Enterprise Value | 64,523.80 |
|---|---|
| Net Debt | 19,030 |
| Equity Value | 45,493.80 |
| Shares Outstanding | 1,235 |
| Equity Value Per Share | 36.84 |