Discounted Cash Flow (DCF) Analysis Levered
Pinnacle West Capital Corporation (PNW)
$80.79
-0.44 (-0.54%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 3,691.25 | 3,471.21 | 3,586.98 | 3,803.84 | 3,847.20 | 3,891.05 | 3,935.40 | 3,980.26 | 4,025.64 | 4,071.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,277.14 | 956.73 | 966.36 | 860.01 | 404.15 | 951.10 | 961.94 | 972.90 | 983.99 | 995.21 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,178.17 | -1,191.45 | -1,326.58 | -1,473.47 | -1,365.38 | -1,380.95 | -1,396.69 | -1,412.61 | -1,428.71 | -1,445 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 98.97 | -234.72 | -360.22 | -613.46 | -961.23 | -429.85 | -434.75 | -439.71 | -444.72 | -449.79 |
Weighted Average Cost Of Capital
| Share price | $ 80.79 |
|---|---|
| Beta | 0.446 |
| Diluted Shares Outstanding | 113.42 |
| Cost of Debt | |
| Tax Rate | 15.99 |
| After-tax Cost of Debt | 4.20% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.849 |
| Total Debt | 965.19 |
| Total Equity | 9,162.88 |
| Total Capital | 10,128.07 |
| Debt Weighting | 9.53 |
| Equity Weighting | 90.47 |
| 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 | 2027 Projected |
| Revenue | 3,691.25 | 3,471.21 | 3,586.98 | 3,803.84 | 3,847.20 | 3,891.05 | 3,935.40 | 3,980.26 | 4,025.64 | 4,071.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,277.14 | 956.73 | 966.36 | 860.01 | 404.15 | 951.10 | 961.94 | 972.90 | 983.99 | 995.21 |
| Capital Expenditure | -1,178.17 | -1,191.45 | -1,326.58 | -1,473.47 | -1,365.38 | -1,380.95 | -1,396.69 | -1,412.61 | -1,428.71 | -1,445 |
| Free Cash Flow | 98.97 | -234.72 | -360.22 | -613.46 | -961.23 | -429.85 | -434.75 | -439.71 | -444.72 | -449.79 |
| WACC | ||||||||||
| PV LFCF | -961.23 | -406.71 | -389.20 | -372.44 | -356.41 | -341.07 | ||||
| SUM PV LFCF | -1,865.83 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.69 |
| Free cash flow (t + 1) | -458.78 |
| Terminal Value | -12,433.14 |
| Present Value of Terminal Value | -9,427.82 |
Intrinsic Value
| Enterprise Value | -11,293.65 |
|---|---|
| Net Debt | 965.19 |
| Equity Value | -12,258.84 |
| Shares Outstanding | 113.42 |
| Equity Value Per Share | -108.09 |