Discounted Cash Flow (DCF) Analysis Levered

Tenet Healthcare Corporation (THC)

$54.145

-0.40 (-0.72%)
All numbers are in Millions, Currency in USD
Stock DCF: 144.34 | 54.145 | 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 19,17918,31318,47917,64019,48519,597.5319,710.7019,824.5319,939.0220,054.17
Revenue (%)
Operating Cash Flow 1,2001,0491,2333,4071,5681,803.711,814.121,824.601,835.141,845.73
Operating Cash Flow (%)
Capital Expenditure -707-617-670-540-658-671-674.87-678.77-682.69-686.63
Capital Expenditure (%)
Free Cash Flow 4934325632,8679101,132.711,139.251,145.831,152.451,159.10

Weighted Average Cost Of Capital

Share price $ 54.145
Beta 2.126
Diluted Shares Outstanding 106.26
Cost of Debt
Tax Rate 51.59
After-tax Cost of Debt 2.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.674
Total Debt 15,646
Total Equity 5,753.61
Total Capital 21,399.61
Debt Weighting 73.11
Equity Weighting 26.89
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 19,17918,31318,47917,64019,48519,597.5319,710.7019,824.5319,939.0220,054.17
Operating Cash Flow 1,2001,0491,2333,4071,5681,803.711,814.121,824.601,835.141,845.73
Capital Expenditure -707-617-670-540-658-671-674.87-678.77-682.69-686.63
Free Cash Flow 4934325632,8679101,132.711,139.251,145.831,152.451,159.10
WACC
PV LFCF 1,071.021,018.54968.63921.16876.02
SUM PV LFCF 4,855.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.76
Free cash flow (t + 1) 1,182.28
Terminal Value 31,443.74
Present Value of Terminal Value 23,764.41

Intrinsic Value

Enterprise Value 28,619.77
Net Debt 13,282
Equity Value 15,337.77
Shares Outstanding 106.26
Equity Value Per Share 144.34