Discounted Cash Flow (DCF) Analysis Levered

Wells Fargo & Company (WFC)

$40.91

+0.05 (+0.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 12.82 | 40.91 | overvalue

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 86,40885,06372,34078,49273,78571,201.3868,708.2266,302.3663,980.7561,740.43
Revenue (%)
Operating Cash Flow 36,0736,7302,051-11,52527,04810,604.6110,233.289,874.969,529.189,195.51
Operating Cash Flow (%)
Capital Expenditure -5,288-5,205.69-4,427.07-4,803.56-4,515.50-4,357.38-4,204.81-4,057.57-3,915.50-3,778.39
Capital Expenditure (%)
Free Cash Flow 30,7851,524.31-2,376.07-16,328.5622,532.506,247.226,028.475,817.385,613.695,417.12

Weighted Average Cost Of Capital

Share price $ 40.91
Beta 1.146
Diluted Shares Outstanding 4,096.20
Cost of Debt
Tax Rate 11.94
After-tax Cost of Debt 3.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.004
Total Debt 226,015
Total Equity 167,575.54
Total Capital 393,590.54
Debt Weighting 57.42
Equity Weighting 42.58
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 86,40885,06372,34078,49273,78571,201.3868,708.2266,302.3663,980.7561,740.43
Operating Cash Flow 36,0736,7302,051-11,52527,04810,604.6110,233.289,874.969,529.189,195.51
Capital Expenditure -5,288-5,205.69-4,427.07-4,803.56-4,515.50-4,357.38-4,204.81-4,057.57-3,915.50-3,778.39
Free Cash Flow 30,7851,524.31-2,376.07-16,328.5622,532.506,247.226,028.475,817.385,613.695,417.12
WACC
PV LFCF 5,202.474,723.224,288.113,893.083,534.45
SUM PV LFCF 24,449.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.29
Free cash flow (t + 1) 5,525.46
Terminal Value 128,798.63
Present Value of Terminal Value 94,939.99

Intrinsic Value

Enterprise Value 119,389.42
Net Debt 66,858
Equity Value 52,531.42
Shares Outstanding 4,096.20
Equity Value Per Share 12.82