Discounted Cash Flow (DCF) Analysis Levered
TE Connectivity Ltd. (TEL)
$133.77
+3.57 (+2.74%)
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 | 13,988 | 13,448 | 12,172 | 14,923 | 16,281 | 17,027.98 | 17,809.24 | 18,626.34 | 19,480.92 | 20,374.72 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,451 | 2,422 | 1,992 | 2,676 | 2,468 | 2,894.37 | 3,027.16 | 3,166.05 | 3,311.31 | 3,463.24 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -935 | -749 | -560 | -690 | -768 | -892.11 | -933.04 | -975.85 | -1,020.63 | -1,067.45 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,516 | 1,673 | 1,432 | 1,986 | 1,700 | 2,002.25 | 2,094.12 | 2,190.20 | 2,290.68 | 2,395.78 |
Weighted Average Cost Of Capital
Share price | $ 133.77 |
---|---|
Beta | 1.302 |
Diluted Shares Outstanding | 325 |
Cost of Debt | |
Tax Rate | 11.16 |
After-tax Cost of Debt | 1.35% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.526 |
Total Debt | 4,332 |
Total Equity | 43,475.25 |
Total Capital | 47,807.25 |
Debt Weighting | 9.06 |
Equity Weighting | 90.94 |
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 | 13,988 | 13,448 | 12,172 | 14,923 | 16,281 | 17,027.98 | 17,809.24 | 18,626.34 | 19,480.92 | 20,374.72 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,451 | 2,422 | 1,992 | 2,676 | 2,468 | 2,894.37 | 3,027.16 | 3,166.05 | 3,311.31 | 3,463.24 |
Capital Expenditure | -935 | -749 | -560 | -690 | -768 | -892.11 | -933.04 | -975.85 | -1,020.63 | -1,067.45 |
Free Cash Flow | 1,516 | 1,673 | 1,432 | 1,986 | 1,700 | 2,002.25 | 2,094.12 | 2,190.20 | 2,290.68 | 2,395.78 |
WACC | ||||||||||
PV LFCF | 1,840.48 | 1,769.39 | 1,701.05 | 1,635.34 | 1,572.18 | |||||
SUM PV LFCF | 8,518.44 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.79 |
Free cash flow (t + 1) | 2,443.70 |
Terminal Value | 35,989.66 |
Present Value of Terminal Value | 23,617.44 |
Intrinsic Value
Enterprise Value | 32,135.88 |
---|---|
Net Debt | 3,244 |
Equity Value | 28,891.88 |
Shares Outstanding | 325 |
Equity Value Per Share | 88.90 |