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
Stock DCF: 635.09 | 11.28 | 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 10,55311,14410,67112,19133,81750,133.1374,321.52110,180.40163,340.58242,149.64
Revenue (%)
Operating Cash Flow 2,5763,3992,7392,7984,30411,656.6817,280.8325,618.5337,979.0456,303.29
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 2,4293,1102,3372,4253,31710,279.8415,239.6922,592.5833,493.1249,652.99

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 10,55311,14410,67112,19133,81750,133.1374,321.52110,180.40163,340.58242,149.64
Operating Cash Flow 2,5763,3992,7392,7984,30411,656.6817,280.8325,618.5337,979.0456,303.29
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 2,4293,1102,3372,4253,31710,279.8415,239.6922,592.5833,493.1249,652.99
WACC
PV LFCF 7,523.6110,588.2214,901.1420,970.8429,512.93
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