Discounted Cash Flow (DCF) Analysis Levered
The Williams Companies, Inc. (WMB)
$28.89
+0.59 (+2.08%)
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 | 8,686 | 8,201 | 7,719 | 10,627 | 10,965 | 11,770.73 | 12,635.67 | 13,564.16 | 14,560.89 | 15,630.85 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,293 | 3,693 | 3,496 | 3,945 | 4,889 | 4,942.37 | 5,305.55 | 5,695.41 | 6,113.92 | 6,563.18 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,263 | -2,149 | -1,275 | -1,247 | -2,283 | -2,656.49 | -2,851.69 | -3,061.24 | -3,286.19 | -3,527.67 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 30 | 1,544 | 2,221 | 2,698 | 2,606 | 2,285.88 | 2,453.85 | 2,634.17 | 2,827.73 | 3,035.52 |
Weighted Average Cost Of Capital
| Share price | $ 28.89 |
|---|---|
| Beta | 1.208 |
| Diluted Shares Outstanding | 1,218.21 |
| Cost of Debt | |
| Tax Rate | 19.39 |
| After-tax Cost of Debt | 4.04% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.183 |
| Total Debt | 22,904 |
| Total Equity | 35,194.23 |
| Total Capital | 58,098.23 |
| Debt Weighting | 39.42 |
| Equity Weighting | 60.58 |
| 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 | 8,686 | 8,201 | 7,719 | 10,627 | 10,965 | 11,770.73 | 12,635.67 | 13,564.16 | 14,560.89 | 15,630.85 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,293 | 3,693 | 3,496 | 3,945 | 4,889 | 4,942.37 | 5,305.55 | 5,695.41 | 6,113.92 | 6,563.18 |
| Capital Expenditure | -3,263 | -2,149 | -1,275 | -1,247 | -2,283 | -2,656.49 | -2,851.69 | -3,061.24 | -3,286.19 | -3,527.67 |
| Free Cash Flow | 30 | 1,544 | 2,221 | 2,698 | 2,606 | 2,285.88 | 2,453.85 | 2,634.17 | 2,827.73 | 3,035.52 |
| WACC | ||||||||||
| PV LFCF | 2,133.35 | 2,137.29 | 2,141.25 | 2,145.21 | 2,149.18 | |||||
| SUM PV LFCF | 10,706.27 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.15 |
| Free cash flow (t + 1) | 3,096.23 |
| Terminal Value | 60,120.93 |
| Present Value of Terminal Value | 42,566.19 |
Intrinsic Value
| Enterprise Value | 53,272.46 |
|---|---|
| Net Debt | 22,752 |
| Equity Value | 30,520.46 |
| Shares Outstanding | 1,218.21 |
| Equity Value Per Share | 25.05 |