Discounted Cash Flow (DCF) Analysis Levered

Wells Fargo & Company (WFC)

$44.12

+0.83 (+1.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 78.56 | 44.12 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 86,27386,40885,06372,34078,49276,951.0275,440.2873,959.2172,507.2271,083.73
Revenue (%)
Operating Cash Flow 18,72236,0736,7302,051-11,5259,159.048,979.238,802.948,630.128,460.69
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----9,159.048,979.238,802.948,630.128,460.69

Weighted Average Cost Of Capital

Share price $ 44.12
Beta 1.142
Diluted Shares Outstanding 4,134.20
Cost of Debt
Tax Rate 25.22
After-tax Cost of Debt 1.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.139
Total Debt 173,907
Total Equity 182,400.90
Total Capital 356,307.90
Debt Weighting 48.81
Equity Weighting 51.19
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 86,27386,40885,06372,34078,49276,951.0275,440.2873,959.2172,507.2271,083.73
Operating Cash Flow 18,72236,0736,7302,051-11,5259,159.048,979.238,802.948,630.128,460.69
Capital Expenditure ----------
Free Cash Flow -----9,159.048,979.238,802.948,630.128,460.69
WACC
PV LFCF 8,723.738,145.987,606.497,102.736,632.33
SUM PV LFCF 38,211.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.99
Free cash flow (t + 1) 8,629.90
Terminal Value 288,625.57
Present Value of Terminal Value 226,253.41

Intrinsic Value

Enterprise Value 264,464.65
Net Debt -60,323
Equity Value 324,787.65
Shares Outstanding 4,134.20
Equity Value Per Share 78.56