Discounted Cash Flow (DCF) Analysis Levered

Sirius XM Holdings Inc. (SIRI)

$6.04

-0.17 (-2.74%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.73 | 6.04 | 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 5,425.135,770.697,7948,0408,6969,842.7211,140.6512,609.7414,272.5516,154.64
Revenue (%)
Operating Cash Flow 1,855.591,880.422,0172,0181,9982,770.603,135.953,549.484,017.544,547.33
Operating Cash Flow (%)
Capital Expenditure -287.97-355.70-363-350-388-491.04-555.80-629.09-712.04-805.94
Capital Expenditure (%)
Free Cash Flow 1,567.621,524.721,6541,6681,6102,279.562,580.162,920.403,305.503,741.39

Weighted Average Cost Of Capital

Share price $ 6.04
Beta 0.968
Diluted Shares Outstanding 4,143
Cost of Debt
Tax Rate 13.89
After-tax Cost of Debt 3.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.456
Total Debt 9,243
Total Equity 25,023.72
Total Capital 34,266.72
Debt Weighting 26.97
Equity Weighting 73.03
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 5,425.135,770.697,7948,0408,6969,842.7211,140.6512,609.7414,272.5516,154.64
Operating Cash Flow 1,855.591,880.422,0172,0181,9982,770.603,135.953,549.484,017.544,547.33
Capital Expenditure -287.97-355.70-363-350-388-491.04-555.80-629.09-712.04-805.94
Free Cash Flow 1,567.621,524.721,6541,6681,6102,279.562,580.162,920.403,305.503,741.39
WACC
PV LFCF 2,140.632,275.252,418.332,570.412,732.05
SUM PV LFCF 12,136.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.49
Free cash flow (t + 1) 3,816.22
Terminal Value 84,993.67
Present Value of Terminal Value 62,064.38

Intrinsic Value

Enterprise Value 74,201.05
Net Debt 9,052
Equity Value 65,149.05
Shares Outstanding 4,143
Equity Value Per Share 15.73