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	19,179	18,313	18,479	17,640	19,485	19,597.53	19,710.70	19,824.53	19,939.02	20,054.17
Revenue (%)
Operating Cash Flow	1,200	1,049	1,233	3,407	1,568	1,803.71	1,814.12	1,824.60	1,835.14	1,845.73
Operating Cash Flow (%)
Capital Expenditure	-707	-617	-670	-540	-658	-671	-674.87	-678.77	-682.69	-686.63
Capital Expenditure (%)
Free Cash Flow	493	432	563	2,867	910	1,132.71	1,139.25	1,145.83	1,152.45	1,159.10

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	19,179	18,313	18,479	17,640	19,485	19,597.53	19,710.70	19,824.53	19,939.02	20,054.17
Operating Cash Flow	1,200	1,049	1,233	3,407	1,568	1,803.71	1,814.12	1,824.60	1,835.14	1,845.73
Capital Expenditure	-707	-617	-670	-540	-658	-671	-674.87	-678.77	-682.69	-686.63
Free Cash Flow	493	432	563	2,867	910	1,132.71	1,139.25	1,145.83	1,152.45	1,159.10
WACC
PV LFCF						1,071.02	1,018.54	968.63	921.16	876.02
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