Discounted Cash Flow (DCF) Analysis Levered

3M Company (MMM)

$149.8

-2.54 (-1.67%)
All numbers are in Millions, Currency in USD
Stock DCF: 213.39 | 149.8 | undervalue

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 31,65732,76532,13632,18435,35536,378.7437,432.1238,51639,631.2740,778.83
Revenue (%)
Operating Cash Flow 6,2406,4397,0708,1137,4547,832.718,059.518,292.898,533.018,780.10
Operating Cash Flow (%)
Capital Expenditure -1,373-1,577-1,699-1,501-1,603-1,719.62-1,769.41-1,820.64-1,873.36-1,927.61
Capital Expenditure (%)
Free Cash Flow 4,8674,8625,3716,6125,8516,113.106,290.116,472.246,659.656,852.49

Weighted Average Cost Of Capital

Share price $ 149.8
Beta 0.970
Diluted Shares Outstanding 585.30
Cost of Debt
Tax Rate 17.81
After-tax Cost of Debt 2.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.465
Total Debt 18,310
Total Equity 87,677.94
Total Capital 105,987.94
Debt Weighting 17.28
Equity Weighting 82.72
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 31,65732,76532,13632,18435,35536,378.7437,432.1238,51639,631.2740,778.83
Operating Cash Flow 6,2406,4397,0708,1137,4547,832.718,059.518,292.898,533.018,780.10
Capital Expenditure -1,373-1,577-1,699-1,501-1,603-1,719.62-1,769.41-1,820.64-1,873.36-1,927.61
Free Cash Flow 4,8674,8625,3716,6125,8516,113.106,290.116,472.246,659.656,852.49
WACC
PV LFCF 5,737.305,540.535,350.505,166.994,989.78
SUM PV LFCF 26,785.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.55
Free cash flow (t + 1) 6,989.54
Terminal Value 153,616.22
Present Value of Terminal Value 111,858.71

Intrinsic Value

Enterprise Value 138,643.80
Net Debt 13,746
Equity Value 124,897.80
Shares Outstanding 585.30
Equity Value Per Share 213.39