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
Stock DCF: -108.09 | 80.79 | 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
2027
Projected
Revenue 3,691.253,471.213,586.983,803.843,847.203,891.053,935.403,980.264,025.644,071.52
Revenue (%)
Operating Cash Flow 1,277.14956.73966.36860.01404.15951.10961.94972.90983.99995.21
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 3,691.253,471.213,586.983,803.843,847.203,891.053,935.403,980.264,025.644,071.52
Operating Cash Flow 1,277.14956.73966.36860.01404.15951.10961.94972.90983.99995.21
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