Discounted Cash Flow (DCF) Analysis Levered
Westlake Corporation (WLK)
$103.95
-4.49 (-4.14%)
All numbers are in Millions, Currency in USD
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 | 8,635 | 8,118 | 7,504 | 11,778 | 15,794 | 18,854.21 | 22,507.36 | 26,868.33 | 32,074.27 | 38,288.91 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,409 | 1,301 | 1,297 | 2,394 | 3,395 | 3,448.40 | 4,116.55 | 4,914.17 | 5,866.33 | 7,002.97 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -702 | -787 | -525 | -658 | -1,108 | -1,411.14 | -1,684.56 | -2,010.96 | -2,400.60 | -2,865.73 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 707 | 514 | 772 | 1,736 | 2,287 | 2,037.26 | 2,431.99 | 2,903.21 | 3,465.73 | 4,137.24 |
Weighted Average Cost Of Capital
| Share price | $ 103.95 |
|---|---|
| Beta | 1.244 |
| Diluted Shares Outstanding | 128.85 |
| Cost of Debt | |
| Tax Rate | 23.73 |
| After-tax Cost of Debt | 2.77% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.510 |
| Total Debt | 4,879 |
| Total Equity | 13,393.50 |
| Total Capital | 18,272.50 |
| Debt Weighting | 26.70 |
| Equity Weighting | 73.30 |
| 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 | 8,635 | 8,118 | 7,504 | 11,778 | 15,794 | 18,854.21 | 22,507.36 | 26,868.33 | 32,074.27 | 38,288.91 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,409 | 1,301 | 1,297 | 2,394 | 3,395 | 3,448.40 | 4,116.55 | 4,914.17 | 5,866.33 | 7,002.97 |
| Capital Expenditure | -702 | -787 | -525 | -658 | -1,108 | -1,411.14 | -1,684.56 | -2,010.96 | -2,400.60 | -2,865.73 |
| Free Cash Flow | 707 | 514 | 772 | 1,736 | 2,287 | 2,037.26 | 2,431.99 | 2,903.21 | 3,465.73 | 4,137.24 |
| WACC | ||||||||||
| PV LFCF | 1,891.43 | 2,096.28 | 2,323.33 | 2,574.96 | 2,853.85 | |||||
| SUM PV LFCF | 11,739.84 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.71 |
| Free cash flow (t + 1) | 4,219.98 |
| Terminal Value | 73,905.13 |
| Present Value of Terminal Value | 50,979.37 |
Intrinsic Value
| Enterprise Value | 62,719.21 |
|---|---|
| Net Debt | 2,651 |
| Equity Value | 60,068.21 |
| Shares Outstanding | 128.85 |
| Equity Value Per Share | 466.20 |