Discounted Cash Flow (DCF) Analysis Levered

Transocean Ltd. (RIG)

$8.38

+0.24 (+2.95%)
All numbers are in Millions, Currency in USD
Stock DCF: -9.24 | 8.38 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,0183,0883,1522,5562,5752,486.332,400.722,318.062,238.242,161.17
Revenue (%)
Operating Cash Flow 558340398575448407.86393.82380.26367.16354.52
Operating Cash Flow (%)
Capital Expenditure -184-387-265-208-717-313.37-302.58-292.16-282.10-272.39
Capital Expenditure (%)
Free Cash Flow 374-47133367-26994.4991.2488.0985.0682.13

Weighted Average Cost Of Capital

Share price $ 8.38
Beta 2.968
Diluted Shares Outstanding 637
Cost of Debt
Tax Rate -10.50
After-tax Cost of Debt 7.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity 18.553
Total Debt 7,347
Total Equity 5,338.06
Total Capital 12,685.06
Debt Weighting 57.92
Equity Weighting 42.08
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,0183,0883,1522,5562,5752,486.332,400.722,318.062,238.242,161.17
Operating Cash Flow 558340398575448407.86393.82380.26367.16354.52
Capital Expenditure -184-387-265-208-717-313.37-302.58-292.16-282.10-272.39
Free Cash Flow 374-47133367-26994.4991.2488.0985.0682.13
WACC
PV LFCF 84.1972.4362.3253.6246.13
SUM PV LFCF 318.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.23
Free cash flow (t + 1) 83.77
Terminal Value 818.90
Present Value of Terminal Value 459.93

Intrinsic Value

Enterprise Value 778.62
Net Debt 6,664
Equity Value -5,885.38
Shares Outstanding 637
Equity Value Per Share -9.24