Discounted Cash Flow (DCF) Analysis Levered
The Williams Companies, Inc. (WMB)
$31.03
-0.48 (-1.52%)
All numbers are in Millions, Currency in USD
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 | 8,031 | 8,686 | 8,201 | 7,719 | 10,627 | 11,540.08 | 12,531.60 | 13,608.32 | 14,777.55 | 16,047.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,556 | 3,293 | 3,693 | 3,496 | 3,945 | 4,551 | 4,942.03 | 5,366.65 | 5,827.75 | 6,328.48 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,440 | -3,263 | -2,149 | -1,275 | -1,247 | -2,825.12 | -3,067.85 | -3,331.44 | -3,617.68 | -3,928.51 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 116 | 30 | 1,544 | 2,221 | 2,698 | 1,725.89 | 1,874.18 | 2,035.21 | 2,210.07 | 2,399.96 |
Weighted Average Cost Of Capital
| Share price | $ 31.03 |
|---|---|
| Beta | 1.249 |
| Diluted Shares Outstanding | 1,218.21 |
| Cost of Debt | |
| Tax Rate | 26.82 |
| After-tax Cost of Debt | 3.64% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.445 |
| Total Debt | 23,698 |
| Total Equity | 37,801.21 |
| Total Capital | 61,499.21 |
| Debt Weighting | 38.53 |
| Equity Weighting | 61.47 |
| 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 | 8,031 | 8,686 | 8,201 | 7,719 | 10,627 | 11,540.08 | 12,531.60 | 13,608.32 | 14,777.55 | 16,047.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,556 | 3,293 | 3,693 | 3,496 | 3,945 | 4,551 | 4,942.03 | 5,366.65 | 5,827.75 | 6,328.48 |
| Capital Expenditure | -2,440 | -3,263 | -2,149 | -1,275 | -1,247 | -2,825.12 | -3,067.85 | -3,331.44 | -3,617.68 | -3,928.51 |
| Free Cash Flow | 116 | 30 | 1,544 | 2,221 | 2,698 | 1,725.89 | 1,874.18 | 2,035.21 | 2,210.07 | 2,399.96 |
| WACC | ||||||||||
| PV LFCF | 1,609.82 | 1,630.57 | 1,651.59 | 1,672.88 | 1,694.45 | |||||
| SUM PV LFCF | 8,259.32 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.21 |
| Free cash flow (t + 1) | 2,447.96 |
| Terminal Value | 46,985.87 |
| Present Value of Terminal Value | 33,173.46 |
Intrinsic Value
| Enterprise Value | 41,432.78 |
|---|---|
| Net Debt | 22,018 |
| Equity Value | 19,414.78 |
| Shares Outstanding | 1,218.21 |
| Equity Value Per Share | 15.94 |