Discounted Cash Flow (DCF) Analysis Levered

Annaly Capital Management, Inc. (NLY)

$18.83

-0.05 (-0.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 149.91 | 18.83 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue -1,992.14-584.732,662.481,954.32-1,651.591,804.74-1,972.092,154.95-2,354.782,573.13
Revenue (%)
Operating Cash Flow -1,199.56527.973,076.845,372.412,367.20783.46-856.11935.49-1,022.241,117.03
Operating Cash Flow (%)
Capital Expenditure --32,676.86-538.14-1,014.26-396.8124,996.90-27,314.7929,847.62-32,615.3135,639.63
Capital Expenditure (%)
Free Cash Flow -1,199.56-32,148.892,538.704,358.151,970.4025,780.36-28,170.9030,783.11-33,637.5436,756.66

Weighted Average Cost Of Capital

Share price $ 18.83
Beta 1.603
Diluted Shares Outstanding 494.54
Cost of Debt
Tax Rate -2.76
After-tax Cost of Debt 29.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.893
Total Debt 13,204.17
Total Equity 9,312.21
Total Capital 22,516.39
Debt Weighting 58.64
Equity Weighting 41.36
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue -1,992.14-584.732,662.481,954.32-1,651.591,804.74-1,972.092,154.95-2,354.782,573.13
Operating Cash Flow -1,199.56527.973,076.845,372.412,367.20783.46-856.11935.49-1,022.241,117.03
Capital Expenditure --32,676.86-538.14-1,014.26-396.8124,996.90-27,314.7929,847.62-32,615.3135,639.63
Free Cash Flow -1,199.56-32,148.892,538.704,358.151,970.4025,780.36-28,170.9030,783.11-33,637.5436,756.66
WACC
PV LFCF 21,134.91-18,933.1816,960.81-15,193.9213,611.09
SUM PV LFCF 17,579.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 21.98
Free cash flow (t + 1) 37,491.79
Terminal Value 187,646.61
Present Value of Terminal Value 69,486.04

Intrinsic Value

Enterprise Value 87,065.75
Net Debt 12,928.32
Equity Value 74,137.43
Shares Outstanding 494.54
Equity Value Per Share 149.91