Discounted Cash Flow (DCF) Analysis Levered

AT&T Inc. (T)

$19.5908

-0.24 (-1.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 113.13 | 19.5908 | 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 160,546170,756181,193171,760168,864171,219.50173,607.87176,029.55178,485.01180,974.72
Revenue (%)
Operating Cash Flow 39,15143,60248,66843,13041,95743,399.9844,005.3744,619.2145,241.6145,872.69
Operating Cash Flow (%)
Capital Expenditure -20,647-20,758-19,435-15,675-16,527-18,716.49-18,977.57-19,242.29-19,510.70-19,782.86
Capital Expenditure (%)
Free Cash Flow 18,50422,84429,23327,45525,43024,683.4925,027.8025,376.9225,730.9126,089.83

Weighted Average Cost Of Capital

Share price $ 19.5,908
Beta 0.732
Diluted Shares Outstanding 7,199
Cost of Debt
Tax Rate 25.48
After-tax Cost of Debt 2.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.083
Total Debt 199,956
Total Equity 141,034.17
Total Capital 340,990.17
Debt Weighting 58.64
Equity Weighting 41.36
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 160,546170,756181,193171,760168,864171,219.50173,607.87176,029.55178,485.01180,974.72
Operating Cash Flow 39,15143,60248,66843,13041,95743,399.9844,005.3744,619.2145,241.6145,872.69
Capital Expenditure -20,647-20,758-19,435-15,675-16,527-18,716.49-18,977.57-19,242.29-19,510.70-19,782.86
Free Cash Flow 18,50422,84429,23327,45525,43024,683.4925,027.8025,376.9225,730.9126,089.83
WACC
PV LFCF 23,636.4022,949.4422,282.4621,634.8521,006.07
SUM PV LFCF 111,509.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.43
Free cash flow (t + 1) 26,611.63
Terminal Value 1,095,128.63
Present Value of Terminal Value 881,736.34

Intrinsic Value

Enterprise Value 993,245.57
Net Debt 178,787
Equity Value 814,458.57
Shares Outstanding 7,199
Equity Value Per Share 113.13