Discounted Cash Flow (DCF) Analysis Levered
Verizon Communications Inc. (VZ)
$41.05
+0.41 (+1.01%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 130,863 | 131,868 | 128,292 | 133,613 | 134,594.50 | 135,583.20 | 136,579.17 | 137,582.46 | 138,593.12 | 139,611.20 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 34,339 | 35,746 | 41,768 | 39,539 | 38,863.15 | 39,148.63 | 39,436.21 | 39,725.90 | 40,017.72 | 40,311.68 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -18,087 | -18,837 | -20,318 | -67,882 | -31,881.50 | -32,115.70 | -32,351.61 | -32,589.26 | -32,828.66 | -33,069.81 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 16,252 | 16,909 | 21,450 | -28,343 | 6,981.65 | 7,032.93 | 7,084.59 | 7,136.64 | 7,189.06 | 7,241.87 |
Weighted Average Cost Of Capital
| Share price | $ 41.05 |
|---|---|
| Beta | 0.339 |
| Diluted Shares Outstanding | 4,150 |
| Cost of Debt | |
| Tax Rate | 25.00 |
| After-tax Cost of Debt | 3.75% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.151 |
| Total Debt | 176,331 |
| Total Equity | 170,357.50 |
| Total Capital | 346,688.50 |
| Debt Weighting | 50.86 |
| Equity Weighting | 49.14 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 130,863 | 131,868 | 128,292 | 133,613 | 134,594.50 | 135,583.20 | 136,579.17 | 137,582.46 | 138,593.12 | 139,611.20 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 34,339 | 35,746 | 41,768 | 39,539 | 38,863.15 | 39,148.63 | 39,436.21 | 39,725.90 | 40,017.72 | 40,311.68 |
| Capital Expenditure | -18,087 | -18,837 | -20,318 | -67,882 | -31,881.50 | -32,115.70 | -32,351.61 | -32,589.26 | -32,828.66 | -33,069.81 |
| Free Cash Flow | 16,252 | 16,909 | 21,450 | -28,343 | 6,981.65 | 7,032.93 | 7,084.59 | 7,136.64 | 7,189.06 | 7,241.87 |
| WACC | ||||||||||
| PV LFCF | 6,981.65 | 6,733.94 | 6,495.03 | 6,264.59 | 6,042.33 | 5,827.96 | ||||
| SUM PV LFCF | 31,363.86 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.44 |
| Free cash flow (t + 1) | 7,386.71 |
| Terminal Value | 302,733.91 |
| Present Value of Terminal Value | 243,627.75 |
Intrinsic Value
| Enterprise Value | 274,991.61 |
|---|---|
| Net Debt | 173,726 |
| Equity Value | 101,265.61 |
| Shares Outstanding | 4,150 |
| Equity Value Per Share | 24.40 |