Discounted Cash Flow (DCF) Analysis Levered
Warner Bros. Discovery, Inc. (WBD)
$11.28
-0.02 (-0.18%)
All numbers are in Millions, Currency in USD
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 | 10,553 | 11,144 | 10,671 | 12,191 | 33,817 | 50,133.13 | 74,321.52 | 110,180.40 | 163,340.58 | 242,149.64 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,576 | 3,399 | 2,739 | 2,798 | 4,304 | 11,656.68 | 17,280.83 | 25,618.53 | 37,979.04 | 56,303.29 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -147 | -289 | -402 | -373 | -987 | -1,376.84 | -2,041.14 | -3,025.95 | -4,485.92 | -6,650.30 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,429 | 3,110 | 2,337 | 2,425 | 3,317 | 10,279.84 | 15,239.69 | 22,592.58 | 33,493.12 | 49,652.99 |
Weighted Average Cost Of Capital
| Share price | $ 11.28 |
|---|---|
| Beta | 1.476 |
| Diluted Shares Outstanding | 1,940 |
| Cost of Debt | |
| Tax Rate | 17.73 |
| After-tax Cost of Debt | 2.99% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.606 |
| Total Debt | 48,999 |
| Total Equity | 21,883.20 |
| Total Capital | 70,882.20 |
| Debt Weighting | 69.13 |
| Equity Weighting | 30.87 |
| 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 | 10,553 | 11,144 | 10,671 | 12,191 | 33,817 | 50,133.13 | 74,321.52 | 110,180.40 | 163,340.58 | 242,149.64 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,576 | 3,399 | 2,739 | 2,798 | 4,304 | 11,656.68 | 17,280.83 | 25,618.53 | 37,979.04 | 56,303.29 |
| Capital Expenditure | -147 | -289 | -402 | -373 | -987 | -1,376.84 | -2,041.14 | -3,025.95 | -4,485.92 | -6,650.30 |
| Free Cash Flow | 2,429 | 3,110 | 2,337 | 2,425 | 3,317 | 10,279.84 | 15,239.69 | 22,592.58 | 33,493.12 | 49,652.99 |
| WACC | ||||||||||
| PV LFCF | 7,523.61 | 10,588.22 | 14,901.14 | 20,970.84 | 29,512.93 | |||||
| SUM PV LFCF | 108,301.90 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.34 |
| Free cash flow (t + 1) | 50,646.05 |
| Terminal Value | 1,516,348.80 |
| Present Value of Terminal Value | 1,169,048.54 |
Intrinsic Value
| Enterprise Value | 1,277,350.44 |
|---|---|
| Net Debt | 45,268 |
| Equity Value | 1,232,082.44 |
| Shares Outstanding | 1,940 |
| Equity Value Per Share | 635.09 |