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 7,6448,3596,7077,1888,3758,652.968,940.159,236.879,543.449,860.18
Revenue (%)
Operating Cash Flow 7511,0328339539301,020.241,054.101,089.091,125.231,162.58
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 578813671839802840.04867.92896.72926.48957.23

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 7,6448,3596,7077,1888,3758,652.968,940.159,236.879,543.449,860.18
Operating Cash Flow 7511,0328339539301,020.241,054.101,089.091,125.231,162.58
Capital Expenditure -173-219-162-114-128-180.20-186.19-192.36-198.75-205.35
Free Cash Flow 578813671839802840.04867.92896.72926.48957.23
WACC
PV LFCF 774.44737.66702.63669.27637.48
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