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	86,273	86,408	85,063	72,340	78,492	76,951.02	75,440.28	73,959.21	72,507.22	71,083.73
Revenue (%)
Operating Cash Flow	18,722	36,073	6,730	2,051	-11,525	9,159.04	8,979.23	8,802.94	8,630.12	8,460.69
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	9,159.04	8,979.23	8,802.94	8,630.12	8,460.69

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	86,273	86,408	85,063	72,340	78,492	76,951.02	75,440.28	73,959.21	72,507.22	71,083.73
Operating Cash Flow	18,722	36,073	6,730	2,051	-11,525	9,159.04	8,979.23	8,802.94	8,630.12	8,460.69
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	9,159.04	8,979.23	8,802.94	8,630.12	8,460.69
WACC
PV LFCF						8,723.73	8,145.98	7,606.49	7,102.73	6,632.33
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