Discounted Cash Flow (DCF) Analysis Levered

Transocean Ltd. (RIG)

$6.24

-0.06 (-0.95%)
Financial Summary
Financial Statements
Quarter Financials
Chart
Financial Ratios
Profile
Historical Data
DCFDCF Levered
All numbers are in Millions, Currency in USD
Stock DCF: -8.48 | 6.24 | 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 3,0183,0883,1522,5562,432.322,314.622,202.622,096.041,994.611,898.09
Revenue (%)
Operating Cash Flow 558340398575448384.42365.82348.11331.27315.24
Operating Cash Flow (%)
Capital Expenditure -184-387-265-208-717-299.29-284.81-271.03-257.91-245.43
Capital Expenditure (%)
Free Cash Flow 374-47133367-26985.1381.0177.0973.3669.81

Weighted Average Cost Of Capital

Share price $ 6.24
Beta 2.908
Diluted Shares Outstanding 699
Cost of Debt
Tax Rate -10.50
After-tax Cost of Debt 7.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.470
Total Debt 7,347
Total Equity 4,361.76
Total Capital 11,708.76
Debt Weighting 62.75
Equity Weighting 37.25
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 3,0183,0883,1522,5562,432.322,314.622,202.622,096.041,994.611,898.09
Operating Cash Flow 558340398575448384.42365.82348.11331.27315.24
Capital Expenditure -184-387-265-208-717-299.29-284.81-271.03-257.91-245.43
Free Cash Flow 374-47133367-26985.1381.0177.0973.3669.81
WACC
PV LFCF -26976.4865.3955.9147.8040.87
SUM PV LFCF 286.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.30
Free cash flow (t + 1) 71.20
Terminal Value 765.63
Present Value of Terminal Value 448.27

Intrinsic Value

Enterprise Value 734.74
Net Debt 6,664
Equity Value -5,929.26
Shares Outstanding 699
Equity Value Per Share -8.48