Discounted Cash Flow (DCF) Analysis Levered

Olin Corporation (OLN)

$62.55

-0.76 (-1.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 66.23 | 62.55 | 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 6,268.406,946.106,1105,7588,910.609,974.6411,165.7312,499.0613,991.6115,662.38
Revenue (%)
Operating Cash Flow 648.80907.80617.30418.401,7411,203.491,347.201,508.081,688.161,889.75
Operating Cash Flow (%)
Capital Expenditure -294.30-385.20-385.60-298.90-200.60-478.66-535.82-599.80-671.42-751.60
Capital Expenditure (%)
Free Cash Flow 354.50522.60231.70119.501,540.40724.83811.39908.281,016.741,138.15

Weighted Average Cost Of Capital

Share price $ 62.55
Beta 1.359
Diluted Shares Outstanding 163.90
Cost of Debt
Tax Rate 15.73
After-tax Cost of Debt 9.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.203
Total Debt 3,158.10
Total Equity 10,251.94
Total Capital 13,410.05
Debt Weighting 23.55
Equity Weighting 76.45
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 6,268.406,946.106,1105,7588,910.609,974.6411,165.7312,499.0613,991.6115,662.38
Operating Cash Flow 648.80907.80617.30418.401,7411,203.491,347.201,508.081,688.161,889.75
Capital Expenditure -294.30-385.20-385.60-298.90-200.60-478.66-535.82-599.80-671.42-751.60
Free Cash Flow 354.50522.60231.70119.501,540.40724.83811.39908.281,016.741,138.15
WACC
PV LFCF 663.64680.18697.13714.50732.30
SUM PV LFCF 3,487.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.22
Free cash flow (t + 1) 1,160.91
Terminal Value 16,079.09
Present Value of Terminal Value 10,345.48

Intrinsic Value

Enterprise Value 13,833.22
Net Debt 2,977.60
Equity Value 10,855.62
Shares Outstanding 163.90
Equity Value Per Share 66.23