Discounted Cash Flow (DCF) Analysis Levered

NOV Inc. (NOV)

$23.425

+0.15 (+0.67%)

All numbers are in Millions, Currency in USD

Stock DCF: 6.43 | 23.425 | overvalue

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	7,304	8,453	8,479	6,090	5,524	5,228.04	4,947.94	4,682.84	4,431.95	4,194.50
Revenue (%)
Operating Cash Flow	832	521	714	926	291	485.67	459.65	435.02	411.72	389.66
Operating Cash Flow (%)
Capital Expenditure	-192	-244	-233	-226	-201	-163.25	-154.50	-146.23	-138.39	-130.98
Capital Expenditure (%)
Free Cash Flow	640	277	481	700	90	322.42	305.15	288.80	273.32	258.68

Weighted Average Cost Of Capital

Share price	$ 23.425
Beta	1.866
Diluted Shares Outstanding	384
Cost of Debt
Tax Rate	-6.52
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.429
Total Debt	1,906
Total Equity	8,995.20
Total Capital	10,901.20
Debt Weighting	17.48
Equity Weighting	82.52
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	7,304	8,453	8,479	6,090	5,524	5,228.04	4,947.94	4,682.84	4,431.95	4,194.50
Operating Cash Flow	832	521	714	926	291	485.67	459.65	435.02	411.72	389.66
Capital Expenditure	-192	-244	-233	-226	-201	-163.25	-154.50	-146.23	-138.39	-130.98
Free Cash Flow	640	277	481	700	90	322.42	305.15	288.80	273.32	258.68
WACC
PV LFCF						290.13	247.08	210.43	179.21	152.62
SUM PV LFCF										1,079.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.13
Free cash flow (t + 1)	263.85
Terminal Value	2,889.96
Present Value of Terminal Value	1,705.05

Intrinsic Value

Enterprise Value	2,784.51
Net Debt	315
Equity Value	2,469.51
Shares Outstanding	384
Equity Value Per Share	6.43