Discounted Cash Flow (DCF) Analysis Levered

The Southern Company JR 2017B NT 77 (SOJC)

$24.6

+0.10 (+0.41%)
All numbers are in Millions, Currency in USD
Stock DCF: -310.22 | 24.6 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 21,41920,37523,11329,27925,25326,609.7828,039.4629,545.9531,133.3832,806.10
Revenue (%)
Operating Cash Flow 5,7816,6966,1696,3027,5537,343.127,737.648,153.378,591.439,053.02
Operating Cash Flow (%)
Capital Expenditure -7,555-7,441-7,240-7,923-9,095-8,844.71-9,319.92-9,820.65-10,348.29-10,904.28
Capital Expenditure (%)
Free Cash Flow -1,774-745-1,071-1,621-1,542-1,501.60-1,582.28-1,667.29-1,756.87-1,851.26

Weighted Average Cost Of Capital

Share price $ 24.6
Beta 0.000
Diluted Shares Outstanding 1,098
Cost of Debt
Tax Rate 8.49
After-tax Cost of Debt 3.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.340
Total Debt 63,490
Total Equity 27,010.80
Total Capital 90,500.80
Debt Weighting 70.15
Equity Weighting 29.85
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 21,41920,37523,11329,27925,25326,609.7828,039.4629,545.9531,133.3832,806.10
Operating Cash Flow 5,7816,6966,1696,3027,5537,343.127,737.648,153.378,591.439,053.02
Capital Expenditure -7,555-7,441-7,240-7,923-9,095-8,844.71-9,319.92-9,820.65-10,348.29-10,904.28
Free Cash Flow -1,774-745-1,071-1,621-1,542-1,501.60-1,582.28-1,667.29-1,756.87-1,851.26
WACC
PV LFCF -1,442.73-1,460.65-1,478.80-1,497.17-1,515.76
SUM PV LFCF -7,395.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.08
Free cash flow (t + 1) -1,916.05
Terminal Value -330,353.95
Present Value of Terminal Value -270,484.94

Intrinsic Value

Enterprise Value -277,880.05
Net Debt 62,742
Equity Value -340,622.05
Shares Outstanding 1,098
Equity Value Per Share -310.22