Discounted Cash Flow (DCF) Analysis Levered
The Charles Schwab Corporation (SCHW)
$54.9
+0.35 (+0.64%)
All numbers are in Millions, Currency in USD
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 | 10,132 | 10,721 | 11,691 | 18,520 | 20,762 | 25,193.61 | 30,571.13 | 37,096.48 | 45,014.65 | 54,622.94 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 12,456 | 9,325 | 6,852 | 2,118 | 2,057 | 14,605.69 | 17,723.25 | 21,506.24 | 26,096.71 | 31,667 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -570 | -708 | -631 | -916 | -971 | -1,373.04 | -1,666.11 | -2,021.74 | -2,453.27 | -2,976.92 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 11,886 | 8,617 | 6,221 | 1,202 | 1,086 | 13,232.66 | 16,057.14 | 19,484.51 | 23,643.43 | 28,690.08 |
Weighted Average Cost Of Capital
| Share price | $ 54.9 |
|---|---|
| Beta | 0.925 |
| Diluted Shares Outstanding | 1,894 |
| Cost of Debt | |
| Tax Rate | 23.49 |
| After-tax Cost of Debt | 3.12% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.937 |
| Total Debt | 37,878 |
| Total Equity | 103,980.60 |
| Total Capital | 141,858.60 |
| Debt Weighting | 26.70 |
| Equity Weighting | 73.30 |
| 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 | 10,132 | 10,721 | 11,691 | 18,520 | 20,762 | 25,193.61 | 30,571.13 | 37,096.48 | 45,014.65 | 54,622.94 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 12,456 | 9,325 | 6,852 | 2,118 | 2,057 | 14,605.69 | 17,723.25 | 21,506.24 | 26,096.71 | 31,667 |
| Capital Expenditure | -570 | -708 | -631 | -916 | -971 | -1,373.04 | -1,666.11 | -2,021.74 | -2,453.27 | -2,976.92 |
| Free Cash Flow | 11,886 | 8,617 | 6,221 | 1,202 | 1,086 | 13,232.66 | 16,057.14 | 19,484.51 | 23,643.43 | 28,690.08 |
| WACC | ||||||||||
| PV LFCF | 12,323.20 | 13,925.84 | 15,736.90 | 17,783.49 | 20,096.24 | |||||
| SUM PV LFCF | 79,865.67 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.38 |
| Free cash flow (t + 1) | 29,263.88 |
| Terminal Value | 543,938.31 |
| Present Value of Terminal Value | 381,006.73 |
Intrinsic Value
| Enterprise Value | 460,872.40 |
|---|---|
| Net Debt | -2,317 |
| Equity Value | 463,189.40 |
| Shares Outstanding | 1,894 |
| Equity Value Per Share | 244.56 |