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
Stock DCF: 25.05 | 28.89 | 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 8,6868,2017,71910,62710,96511,770.7312,635.6713,564.1614,560.8915,630.85
Revenue (%)
Operating Cash Flow 3,2933,6933,4963,9454,8894,942.375,305.555,695.416,113.926,563.18
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 301,5442,2212,6982,6062,285.882,453.852,634.172,827.733,035.52

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 8,6868,2017,71910,62710,96511,770.7312,635.6713,564.1614,560.8915,630.85
Operating Cash Flow 3,2933,6933,4963,9454,8894,942.375,305.555,695.416,113.926,563.18
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 301,5442,2212,6982,6062,285.882,453.852,634.172,827.733,035.52
WACC
PV LFCF 2,133.352,137.292,141.252,145.212,149.18
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