Discounted Cash Flow (DCF) Analysis Levered

MasTec, Inc. (MTZ)

$79.97

+1.79 (+2.29%)

All numbers are in Millions, Currency in USD

Stock DCF: 129.13 | 79.97 | 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	6,606.98	6,909.42	7,183.19	6,320.97	7,951.78	8,395.82	8,864.65	9,359.67	9,882.33	10,434.17
Revenue (%)
Operating Cash Flow	156.26	529.96	550.28	937.25	793.07	713.59	753.44	795.52	839.94	886.84
Operating Cash Flow (%)
Capital Expenditure	-123.41	-180.42	-126.47	-213.75	-191.27	-201.95	-213.22	-225.13	-237.70	-250.98
Capital Expenditure (%)
Free Cash Flow	32.85	349.54	423.81	723.51	601.81	511.65	540.22	570.38	602.24	635.87

Weighted Average Cost Of Capital

Share price	$ 79.97
Beta	1.221
Diluted Shares Outstanding	73.94
Cost of Debt
Tax Rate	23.54
After-tax Cost of Debt	1.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.729
Total Debt	2,052.61
Total Equity	5,913.06
Total Capital	7,965.67
Debt Weighting	25.77
Equity Weighting	74.23
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	6,606.98	6,909.42	7,183.19	6,320.97	7,951.78	8,395.82	8,864.65	9,359.67	9,882.33	10,434.17
Operating Cash Flow	156.26	529.96	550.28	937.25	793.07	713.59	753.44	795.52	839.94	886.84
Capital Expenditure	-123.41	-180.42	-126.47	-213.75	-191.27	-201.95	-213.22	-225.13	-237.70	-250.98
Free Cash Flow	32.85	349.54	423.81	723.51	601.81	511.65	540.22	570.38	602.24	635.87
WACC
PV LFCF						478.22	471.94	465.73	459.61	453.58
SUM PV LFCF										2,329.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.99
Free cash flow (t + 1)	648.58
Terminal Value	12,997.65
Present Value of Terminal Value	9,271.48

Intrinsic Value

Enterprise Value	11,600.56
Net Debt	2,052.61
Equity Value	9,547.95
Shares Outstanding	73.94
Equity Value Per Share	129.13