Discounted Cash Flow (DCF) Analysis Levered
The Southern Company (SO)
$67.03
-0.24 (-0.36%)
All numbers are in Millions, Currency in USD
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 | 23,031 | 23,495 | 21,419 | 20,375 | 23,113 | 23,213.69 | 23,314.82 | 23,416.40 | 23,518.41 | 23,620.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,395 | 6,945 | 5,781 | 6,696 | 6,169 | 6,679.55 | 6,708.65 | 6,737.87 | 6,767.23 | 6,796.71 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -7,423 | -8,001 | -7,555 | -7,441 | -7,240 | -7,864.87 | -7,899.13 | -7,933.55 | -7,968.11 | -8,002.82 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -1,028 | -1,056 | -1,774 | -745 | -1,071 | -1,185.32 | -1,190.49 | -1,195.67 | -1,200.88 | -1,206.11 |
Weighted Average Cost Of Capital
| Share price | $ 67.03 |
|---|---|
| Beta | 0.506 |
| Diluted Shares Outstanding | 1,068 |
| Cost of Debt | |
| Tax Rate | 6.52 |
| After-tax Cost of Debt | 3.09% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.007 |
| Total Debt | 55,470 |
| Total Equity | 71,588.04 |
| Total Capital | 127,058.04 |
| Debt Weighting | 43.66 |
| Equity Weighting | 56.34 |
| 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 | 23,031 | 23,495 | 21,419 | 20,375 | 23,113 | 23,213.69 | 23,314.82 | 23,416.40 | 23,518.41 | 23,620.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,395 | 6,945 | 5,781 | 6,696 | 6,169 | 6,679.55 | 6,708.65 | 6,737.87 | 6,767.23 | 6,796.71 |
| Capital Expenditure | -7,423 | -8,001 | -7,555 | -7,441 | -7,240 | -7,864.87 | -7,899.13 | -7,933.55 | -7,968.11 | -8,002.82 |
| Free Cash Flow | -1,028 | -1,056 | -1,774 | -745 | -1,071 | -1,185.32 | -1,190.49 | -1,195.67 | -1,200.88 | -1,206.11 |
| WACC | ||||||||||
| PV LFCF | -897.76 | -860.87 | -825.49 | -791.57 | -759.04 | |||||
| SUM PV LFCF | -5,212.06 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.74 |
| Free cash flow (t + 1) | -1,230.24 |
| Terminal Value | -44,899.13 |
| Present Value of Terminal Value | -35,618.46 |
Intrinsic Value
| Enterprise Value | -40,830.51 |
|---|---|
| Net Debt | 53,672 |
| Equity Value | -94,502.51 |
| Shares Outstanding | 1,068 |
| Equity Value Per Share | -88.49 |