Discounted Cash Flow (DCF) Analysis Levered

3M Company (MMM)

$93.62

+0.36 (+0.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 147.13 | 93.62 | 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 32,76532,13632,18435,35534,22934,648.0935,072.3235,501.7435,936.4136,376.41
Revenue (%)
Operating Cash Flow 6,4397,0708,1137,4545,5917,226.067,314.537,404.097,494.757,586.51
Operating Cash Flow (%)
Capital Expenditure -1,577-1,699-1,501-1,603-1,749-1,691.35-1,712.05-1,733.02-1,754.24-1,775.71
Capital Expenditure (%)
Free Cash Flow 4,8625,3716,6125,8513,8425,534.715,602.485,671.085,740.515,810.80

Weighted Average Cost Of Capital

Share price $ 93.62
Beta 0.968
Diluted Shares Outstanding 567.60
Cost of Debt
Tax Rate 9.62
After-tax Cost of Debt 2.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.143
Total Debt 16,200
Total Equity 53,138.71
Total Capital 69,338.71
Debt Weighting 23.36
Equity Weighting 76.64
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 32,76532,13632,18435,35534,22934,648.0935,072.3235,501.7435,936.4136,376.41
Operating Cash Flow 6,4397,0708,1137,4545,5917,226.067,314.537,404.097,494.757,586.51
Capital Expenditure -1,577-1,699-1,501-1,603-1,749-1,691.35-1,712.05-1,733.02-1,754.24-1,775.71
Free Cash Flow 4,8625,3716,6125,8513,8425,534.715,602.485,671.085,740.515,810.80
WACC
PV LFCF 5,143.314,838.104,551.014,280.954,026.92
SUM PV LFCF 22,840.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.61
Free cash flow (t + 1) 5,927.01
Terminal Value 105,650.85
Present Value of Terminal Value 73,216.65

Intrinsic Value

Enterprise Value 96,056.93
Net Debt 12,545
Equity Value 83,511.93
Shares Outstanding 567.60
Equity Value Per Share 147.13