Discounted Cash Flow (DCF) Analysis Levered
Southern Copper Corporation (SCCO)
$69.22
+2.45 (+3.67%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 7,285.60 | 7,984.90 | 10,934.10 | 10,047.90 | 11,334.98 | 12,786.92 | 14,424.84 | 16,272.58 | 18,357 | 20,708.42 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,911.90 | 2,783.60 | 4,292.40 | 2,802.50 | 3,634.32 | 4,099.85 | 4,625.02 | 5,217.45 | 5,885.78 | 6,639.71 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -707.50 | -592.20 | -892.30 | -948.50 | -984.10 | -1,110.16 | -1,252.36 | -1,412.78 | -1,593.75 | -1,797.90 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,204.40 | 2,191.40 | 3,400.10 | 1,854 | 2,650.22 | 2,989.69 | 3,372.65 | 3,804.67 | 4,292.02 | 4,841.81 |
Weighted Average Cost Of Capital
| Share price | $ 69.22 |
|---|---|
| Beta | 1.236 |
| Diluted Shares Outstanding | 773.10 |
| Cost of Debt | |
| Tax Rate | 38.12 |
| After-tax Cost of Debt | 3.09% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.450 |
| Total Debt | 7,008.50 |
| Total Equity | 53,513.98 |
| Total Capital | 60,522.48 |
| Debt Weighting | 11.58 |
| Equity Weighting | 88.42 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 7,285.60 | 7,984.90 | 10,934.10 | 10,047.90 | 11,334.98 | 12,786.92 | 14,424.84 | 16,272.58 | 18,357 | 20,708.42 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,911.90 | 2,783.60 | 4,292.40 | 2,802.50 | 3,634.32 | 4,099.85 | 4,625.02 | 5,217.45 | 5,885.78 | 6,639.71 |
| Capital Expenditure | -707.50 | -592.20 | -892.30 | -948.50 | -984.10 | -1,110.16 | -1,252.36 | -1,412.78 | -1,593.75 | -1,797.90 |
| Free Cash Flow | 1,204.40 | 2,191.40 | 3,400.10 | 1,854 | 2,650.22 | 2,989.69 | 3,372.65 | 3,804.67 | 4,292.02 | 4,841.81 |
| WACC | ||||||||||
| PV LFCF | 2,437.88 | 2,529.81 | 2,625.20 | 2,724.20 | 2,826.93 | 2,933.53 | ||||
| SUM PV LFCF | 14,827.68 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.71 |
| Free cash flow (t + 1) | 4,938.64 |
| Terminal Value | 73,601.23 |
| Present Value of Terminal Value | 48,477.21 |
Intrinsic Value
| Enterprise Value | 63,304.89 |
|---|---|
| Net Debt | 4,708.70 |
| Equity Value | 58,596.19 |
| Shares Outstanding | 773.10 |
| Equity Value Per Share | 75.79 |