Discounted Cash Flow (DCF) Analysis Levered

Shell plc (RDS-B)

$51.06

-0.03 (-0.06%)
All numbers are in Millions, Currency in USD
Stock DCF: 111.87 | 51.06 | 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 305,179388,379344,877180,543261,504270,169.45279,122.06288,371.33297,927.09307,799.50
Revenue (%)
Operating Cash Flow 35,65053,08542,17834,10545,10539,832.9341,152.8842,516.5643,925.4345,380.99
Operating Cash Flow (%)
Capital Expenditure -20,845-23,011-22,971-16,585-19,000-19,380.75-20,022.97-20,686.48-21,371.96-22,080.17
Capital Expenditure (%)
Free Cash Flow 14,80530,07419,20717,52026,10520,452.1821,129.9021,830.0822,553.4723,300.82

Weighted Average Cost Of Capital

Share price $ 51.06
Beta 1.045
Diluted Shares Outstanding 4,029.15
Cost of Debt
Tax Rate 32.61
After-tax Cost of Debt 2.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.783
Total Debt 89,086
Total Equity 205,728.40
Total Capital 294,814.40
Debt Weighting 30.22
Equity Weighting 69.78
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 305,179388,379344,877180,543261,504270,169.45279,122.06288,371.33297,927.09307,799.50
Operating Cash Flow 35,65053,08542,17834,10545,10539,832.9341,152.8842,516.5643,925.4345,380.99
Capital Expenditure -20,845-23,011-22,971-16,585-19,000-19,380.75-20,022.97-20,686.48-21,371.96-22,080.17
Free Cash Flow 14,80530,07419,20717,52026,10520,452.1821,129.9021,830.0822,553.4723,300.82
WACC
PV LFCF 18,113.4017,611.1617,122.8516,648.0816,186.48
SUM PV LFCF 91,045.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.26
Free cash flow (t + 1) 23,766.84
Terminal Value 557,907.01
Present Value of Terminal Value 411,825.05

Intrinsic Value

Enterprise Value 502,870.72
Net Debt 52,115
Equity Value 450,755.72
Shares Outstanding 4,029.15
Equity Value Per Share 111.87