Discounted Cash Flow (DCF) Analysis Levered

Telefónica, S.A. (TNE5.DE)

3.826 €

+0.01 (+0.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 6.28 | 3.826 | undervalue

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 48,69348,42243,07639,27739,99338,133.9936,361.4034,671.2033,059.5731,522.85
Revenue (%)
Operating Cash Flow 13,30915,00513,19610,26810,80710,839.1610,335.329,854.909,396.818,960.02
Operating Cash Flow (%)
Capital Expenditure -8,777-8,410-7,020-6,164-5,508-6,189.62-5,901.90-5,627.56-5,365.98-5,116.55
Capital Expenditure (%)
Free Cash Flow 4,5326,5956,1764,1045,2994,649.554,433.424,227.344,030.843,843.47

Weighted Average Cost Of Capital

Share price $ 3.826
Beta 0.689
Diluted Shares Outstanding 5,740
Cost of Debt
Tax Rate 32.06
After-tax Cost of Debt 23.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.458
Total Debt 8,677
Total Equity 21,961.24
Total Capital 30,638.24
Debt Weighting 28.32
Equity Weighting 71.68
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 48,69348,42243,07639,27739,99338,133.9936,361.4034,671.2033,059.5731,522.85
Operating Cash Flow 13,30915,00513,19610,26810,80710,839.1610,335.329,854.909,396.818,960.02
Capital Expenditure -8,777-8,410-7,020-6,164-5,508-6,189.62-5,901.90-5,627.56-5,365.98-5,116.55
Free Cash Flow 4,5326,5956,1764,1045,2994,649.554,433.424,227.344,030.843,843.47
WACC
PV LFCF 4,149.163,530.513,004.112,556.192,175.06
SUM PV LFCF 15,415.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.06
Free cash flow (t + 1) 3,920.34
Terminal Value 38,969.59
Present Value of Terminal Value 22,053.26

Intrinsic Value

Enterprise Value 37,468.28
Net Debt 1,432
Equity Value 36,036.28
Shares Outstanding 5,740
Equity Value Per Share 6.28