Discounted Cash Flow (DCF) Analysis Levered

Union Pacific Corporation (UNP)

$199.265

-1.73 (-0.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 13.14 | 199.265 | overvalue

Free Cash Flow

Year
A/P
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 19,53321,80424,8756,0565,047.814,207.473,507.022,923.182,436.54
Revenue (%)
Operating Cash Flow 8,5409,532.9010,875.572,647.742,206.951,839.541,533.301,278.041,065.27
Operating Cash Flow (%)
Capital Expenditure -2,927-3,267.31-3,727.49-907.49-756.41-630.48-525.52-438.04-365.11
Capital Expenditure (%)
Free Cash Flow 5,6136,265.597,148.081,740.251,450.541,209.061,007.78840700.16

Weighted Average Cost Of Capital

Share price $ 199.265
Beta 1.105
Diluted Shares Outstanding 624
Cost of Debt
Tax Rate 23.90
After-tax Cost of Debt 6.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.966
Total Debt 3,825
Total Equity 124,341.36
Total Capital 128,166.36
Debt Weighting 2.98
Equity Weighting 97.02
Wacc

Build Up Free Cash Flow

Year
A/P
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 19,53321,80424,8756,0565,047.814,207.473,507.022,923.182,436.54
Operating Cash Flow 8,5409,532.9010,875.572,647.742,206.951,839.541,533.301,278.041,065.27
Capital Expenditure -2,927-3,267.31-3,727.49-907.49-756.41-630.48-525.52-438.04-365.11
Free Cash Flow 5,6136,265.597,148.081,740.251,450.541,209.061,007.78840700.16
WACC
PV LFCF 1,450.541,110.25849.78650.43497.84
SUM PV LFCF 4,186.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.90
Free cash flow (t + 1) 714.17
Terminal Value 10,350.23
Present Value of Terminal Value 6,757.88

Intrinsic Value

Enterprise Value 10,944.14
Net Debt 2,746
Equity Value 8,198.14
Shares Outstanding 624
Equity Value Per Share 13.14