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 |