Discounted Cash Flow (DCF) Analysis Levered

The PNC Financial Services Group, I... (PNC)

$163.77

-1.62 (-0.98%)
All numbers are in Millions, Currency in USD
Stock DCF: 532.80 | 163.77 | 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 16,32917,13217,82716,79819,13519,953.7220,807.4721,697.7522,626.1223,594.21
Revenue (%)
Operating Cash Flow 5,6997,8407,3634,6597,2147,478.737,798.728,132.408,480.368,843.20
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----7,478.737,798.728,132.408,480.368,843.20

Weighted Average Cost Of Capital

Share price $ 163.77
Beta 1.127
Diluted Shares Outstanding 427
Cost of Debt
Tax Rate 18.80
After-tax Cost of Debt 1.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.946
Total Debt 30,784
Total Equity 69,929.79
Total Capital 100,713.79
Debt Weighting 30.57
Equity Weighting 69.43
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 16,32917,13217,82716,79819,13519,953.7220,807.4721,697.7522,626.1223,594.21
Operating Cash Flow 5,6997,8407,3634,6597,2147,478.737,798.728,132.408,480.368,843.20
Capital Expenditure ----------
Free Cash Flow -----7,478.737,798.728,132.408,480.368,843.20
WACC
PV LFCF 7,015.706,862.926,713.476,567.286,424.27
SUM PV LFCF 33,583.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.60
Free cash flow (t + 1) 9,020.06
Terminal Value 196,088.37
Present Value of Terminal Value 142,451.10

Intrinsic Value

Enterprise Value 176,034.73
Net Debt -51,470
Equity Value 227,504.73
Shares Outstanding 427
Equity Value Per Share 532.80