Discounted Cash Flow (DCF) Analysis Levered

TE Connectivity Ltd. (TEL)

$123.95

-1.83 (-1.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.15 | 123.95 | overvalue

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 13,98813,44812,17214,9234,3593,688.393,120.952,640.812,234.541,890.76
Revenue (%)
Operating Cash Flow 2,4512,4221,9922,676944674.87571.05483.19408.86345.96
Operating Cash Flow (%)
Capital Expenditure -935-749-560-690-212-194.32-164.42-139.13-117.72-99.61
Capital Expenditure (%)
Free Cash Flow 1,5161,6731,4321,986732480.55406.62344.07291.13246.34

Weighted Average Cost Of Capital

Share price $ 123.95
Beta 1.300
Diluted Shares Outstanding 325
Cost of Debt
Tax Rate -8.59
After-tax Cost of Debt 0.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.735
Total Debt 4,206
Total Equity 40,283.75
Total Capital 44,489.75
Debt Weighting 9.45
Equity Weighting 90.55
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 13,98813,44812,17214,9234,3593,688.393,120.952,640.812,234.541,890.76
Operating Cash Flow 2,4512,4221,9922,676944674.87571.05483.19408.86345.96
Capital Expenditure -935-749-560-690-212-194.32-164.42-139.13-117.72-99.61
Free Cash Flow 1,5161,6731,4321,986732480.55406.62344.07291.13246.34
WACC
PV LFCF 441.44343.13266.71207.31161.14
SUM PV LFCF 1,419.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.86
Free cash flow (t + 1) 251.27
Terminal Value 3,662.85
Present Value of Terminal Value 2,395.95

Intrinsic Value

Enterprise Value 3,815.68
Net Debt 3,118
Equity Value 697.68
Shares Outstanding 325
Equity Value Per Share 2.15