Discounted Cash Flow (DCF) Analysis Levered

Occidental Petroleum Corporation (OXY)

$68.66

+2.27 (+3.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 64.23 | 68.66 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 17,82420,39317,80925,95630,064.7234,823.8340,336.2946,721.3454,117.13
Revenue (%)
Operating Cash Flow 7,6697,3753,95510,43410,642.7112,327.4014,278.7716,539.0419,157.10
Operating Cash Flow (%)
Capital Expenditure -4,920-6,637-3,054-2,773-6,612.80-7,659.57-8,872.05-10,276.45-11,903.17
Capital Expenditure (%)
Free Cash Flow 2,7497389017,6614,029.914,667.835,406.736,262.597,253.93

Weighted Average Cost Of Capital

Share price $ 68.66
Beta 1.975
Diluted Shares Outstanding 918.70
Cost of Debt
Tax Rate 37.33
After-tax Cost of Debt 3.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.076
Total Debt 30,388
Total Equity 63,077.94
Total Capital 93,465.94
Debt Weighting 32.51
Equity Weighting 67.49
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 17,82420,39317,80925,95630,064.7234,823.8340,336.2946,721.3454,117.13
Operating Cash Flow 7,6697,3753,95510,43410,642.7112,327.4014,278.7716,539.0419,157.10
Capital Expenditure -4,920-6,637-3,054-2,773-6,612.80-7,659.57-8,872.05-10,276.45-11,903.17
Free Cash Flow 2,7497389017,6614,029.914,667.835,406.736,262.597,253.93
WACC
PV LFCF 4,029.914,273.394,531.594,805.385,095.72
SUM PV LFCF 20,814.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.23
Free cash flow (t + 1) 7,399
Terminal Value 102,337.54
Present Value of Terminal Value 65,815.06

Intrinsic Value

Enterprise Value 86,629.85
Net Debt 27,624
Equity Value 59,005.85
Shares Outstanding 918.70
Equity Value Per Share 64.23