Discounted Cash Flow (DCF) Analysis Levered

The Kraft Heinz Company (KHC)

$38.99

+0.62 (+1.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.25 | 38.99 | overvalue

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 26,07626,26824,97726,18526,04226,049.2926,056.5826,063.8726,071.1626,078.45
Revenue (%)
Operating Cash Flow 5272,5743,5524,9295,3643,410.493,411.453,412.403,413.363,414.31
Operating Cash Flow (%)
Capital Expenditure -1,217-826-768-596-905-866.80-867.04-867.29-867.53-867.77
Capital Expenditure (%)
Free Cash Flow -6901,7482,7844,3334,4592,543.692,544.402,545.122,545.832,546.54

Weighted Average Cost Of Capital

Share price $ 38.99
Beta 0.987
Diluted Shares Outstanding 1,236
Cost of Debt
Tax Rate 40.75
After-tax Cost of Debt 5.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.519
Total Debt 21,815
Total Equity 48,191.64
Total Capital 70,006.64
Debt Weighting 31.16
Equity Weighting 68.84
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 26,07626,26824,97726,18526,04226,049.2926,056.5826,063.8726,071.1626,078.45
Operating Cash Flow 5272,5743,5524,9295,3643,410.493,411.453,412.403,413.363,414.31
Capital Expenditure -1,217-826-768-596-905-866.80-867.04-867.29-867.53-867.77
Free Cash Flow -6901,7482,7844,3334,4592,543.692,544.402,545.122,545.832,546.54
WACC
PV LFCF 1,703.551,593.891,491.291,395.291,305.47
SUM PV LFCF 10,460.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.91
Free cash flow (t + 1) 2,597.47
Terminal Value 52,901.66
Present Value of Terminal Value 37,877.18

Intrinsic Value

Enterprise Value 48,337.46
Net Debt 18,370
Equity Value 29,967.46
Shares Outstanding 1,236
Equity Value Per Share 24.25