Discounted Cash Flow (DCF) Analysis Levered

Masco Corporation (MAS)

$54.27

-1.12 (-2.02%)

All numbers are in Millions, Currency in USD

Stock DCF: 45.13 | 54.27 | 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	7,644	8,359	6,707	7,188	8,375	8,652.96	8,940.15	9,236.87	9,543.44	9,860.18
Revenue (%)
Operating Cash Flow	751	1,032	833	953	930	1,020.24	1,054.10	1,089.09	1,125.23	1,162.58
Operating Cash Flow (%)
Capital Expenditure	-173	-219	-162	-114	-128	-180.20	-186.19	-192.36	-198.75	-205.35
Capital Expenditure (%)
Free Cash Flow	578	813	671	839	802	840.04	867.92	896.72	926.48	957.23

Weighted Average Cost Of Capital

Share price	$ 54.27
Beta	1.185
Diluted Shares Outstanding	251
Cost of Debt
Tax Rate	40.70
After-tax Cost of Debt	5.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.225
Total Debt	3,169
Total Equity	13,621.77
Total Capital	16,790.77
Debt Weighting	18.87
Equity Weighting	81.13
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	7,644	8,359	6,707	7,188	8,375	8,652.96	8,940.15	9,236.87	9,543.44	9,860.18
Operating Cash Flow	751	1,032	833	953	930	1,020.24	1,054.10	1,089.09	1,125.23	1,162.58
Capital Expenditure	-173	-219	-162	-114	-128	-180.20	-186.19	-192.36	-198.75	-205.35
Free Cash Flow	578	813	671	839	802	840.04	867.92	896.72	926.48	957.23
WACC
PV LFCF						774.44	737.66	702.63	669.27	637.48
SUM PV LFCF										3,521.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.47
Free cash flow (t + 1)	976.38
Terminal Value	15,090.86
Present Value of Terminal Value	10,049.99

Intrinsic Value

Enterprise Value	13,571.48
Net Debt	2,243
Equity Value	11,328.48
Shares Outstanding	251
Equity Value Per Share	45.13