Discounted Cash Flow (DCF) Analysis Levered

MasTec, Inc. (MTZ)

$73.55

+1.28 (+1.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 154.80 | 73.55 | 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 6,909.427,183.196,320.987,951.789,778.0410,773.5811,870.4813,079.0614,410.7015,877.91
Revenue (%)
Operating Cash Flow 529.96550.28937.25793.07352.30942.361,038.311,144.021,260.501,388.84
Operating Cash Flow (%)
Capital Expenditure -180.42-126.47-213.75-170.07-263.35-271.18-298.79-329.21-362.73-399.66
Capital Expenditure (%)
Free Cash Flow 349.54423.81723.51623.0188.95671.18739.52814.81897.77989.17

Weighted Average Cost Of Capital

Share price $ 73.55
Beta 1.430
Diluted Shares Outstanding 76.19
Cost of Debt
Tax Rate 22.54
After-tax Cost of Debt 2.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.306
Total Debt 3,514.68
Total Equity 5,603.41
Total Capital 9,118.08
Debt Weighting 38.55
Equity Weighting 61.45
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 6,909.427,183.196,320.987,951.789,778.0410,773.5811,870.4813,079.0614,410.7015,877.91
Operating Cash Flow 529.96550.28937.25793.07352.30942.361,038.311,144.021,260.501,388.84
Capital Expenditure -180.42-126.47-213.75-170.07-263.35-271.18-298.79-329.21-362.73-399.66
Free Cash Flow 349.54423.81723.51623.0188.95671.18739.52814.81897.77989.17
WACC
PV LFCF 622.04635.19648.62662.34676.34
SUM PV LFCF 3,244.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.90
Free cash flow (t + 1) 1,008.96
Terminal Value 17,100.99
Present Value of Terminal Value 11,692.68

Intrinsic Value

Enterprise Value 14,937.21
Net Debt 3,144.08
Equity Value 11,793.13
Shares Outstanding 76.19
Equity Value Per Share 154.80