Discounted Cash Flow (DCF) Analysis Levered

Wells Fargo & Company (WFC)

$41.785

-0.28 (-0.68%)

All numbers are in Millions, Currency in USD

Stock DCF: 37.86 | 41.785 | 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	86,408	85,063	72,340	78,492	73,785	71,201.38	68,708.22	66,302.36	63,980.75	61,740.43
Revenue (%)
Operating Cash Flow	36,073	6,730	2,051	-11,525	27,048	10,604.61	10,233.28	9,874.96	9,529.18	9,195.51
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	10,604.61	10,233.28	9,874.96	9,529.18	9,195.51

Weighted Average Cost Of Capital

Share price	$ 41.785
Beta	1.125
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	9.061
Total Debt	226,015
Total Equity	171,159.72
Total Capital	397,174.72
Debt Weighting	56.91
Equity Weighting	43.09
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	86,408	85,063	72,340	78,492	73,785	71,201.38	68,708.22	66,302.36	63,980.75	61,740.43
Operating Cash Flow	36,073	6,730	2,051	-11,525	27,048	10,604.61	10,233.28	9,874.96	9,529.18	9,195.51
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	10,604.61	10,233.28	9,874.96	9,529.18	9,195.51
WACC
PV LFCF						10,012.85	9,123.07	8,312.36	7,573.69	6,900.67
SUM PV LFCF										41,922.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.91
Free cash flow (t + 1)	9,379.42
Terminal Value	239,882.92
Present Value of Terminal Value	180,017.40

Intrinsic Value

Enterprise Value	221,940.04
Net Debt	66,858
Equity Value	155,082.04
Shares Outstanding	4,096.20
Equity Value Per Share	37.86