Discounted Cash Flow (DCF) Analysis Levered
Pinnacle West Capital Corporation (PNW)
$74.54
+0.01 (+0.01%)
All numbers are in Millions, Currency in USD
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 | 3,565.30 | 3,691.25 | 3,471.21 | 3,586.98 | 3,803.84 | 3,869.95 | 3,937.21 | 4,005.65 | 4,075.27 | 4,146.10 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,118.04 | 1,277.14 | 956.73 | 966.36 | 860.01 | 1,107.35 | 1,126.59 | 1,146.17 | 1,166.10 | 1,186.36 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -1,408.77 | -1,178.17 | -1,191.45 | -1,326.58 | -1,473.47 | -1,404.60 | -1,429.01 | -1,453.85 | -1,479.12 | -1,504.83 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | -290.74 | 98.97 | -234.72 | -360.22 | -613.46 | -297.25 | -302.42 | -307.67 | -313.02 | -318.46 |
Weighted Average Cost Of Capital
Share price | $ 74.54 |
---|---|
Beta | 0.275 |
Diluted Shares Outstanding | 112.94 |
Cost of Debt | |
Tax Rate | 17.06 |
After-tax Cost of Debt | 2.36% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 4.184 |
Total Debt | 8,184.58 |
Total Equity | 8,418.70 |
Total Capital | 16,603.28 |
Debt Weighting | 49.29 |
Equity Weighting | 50.71 |
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 | 3,565.30 | 3,691.25 | 3,471.21 | 3,586.98 | 3,803.84 | 3,869.95 | 3,937.21 | 4,005.65 | 4,075.27 | 4,146.10 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,118.04 | 1,277.14 | 956.73 | 966.36 | 860.01 | 1,107.35 | 1,126.59 | 1,146.17 | 1,166.10 | 1,186.36 |
Capital Expenditure | -1,408.77 | -1,178.17 | -1,191.45 | -1,326.58 | -1,473.47 | -1,404.60 | -1,429.01 | -1,453.85 | -1,479.12 | -1,504.83 |
Free Cash Flow | -290.74 | 98.97 | -234.72 | -360.22 | -613.46 | -297.25 | -302.42 | -307.67 | -313.02 | -318.46 |
WACC | ||||||||||
PV LFCF | -287.78 | -283.46 | -279.20 | -275.01 | -270.87 | |||||
SUM PV LFCF | -1,396.32 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 3.29 |
Free cash flow (t + 1) | -324.83 |
Terminal Value | -25,180.78 |
Present Value of Terminal Value | -21,417.94 |
Intrinsic Value
Enterprise Value | -22,814.27 |
---|---|
Net Debt | 8,174.61 |
Equity Value | -30,988.88 |
Shares Outstanding | 112.94 |
Equity Value Per Share | -274.38 |