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
Stock DCF: 15.94 | 31.03 | overvalue

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 8,0318,6868,2017,71910,62711,540.0812,531.6013,608.3214,777.5516,047.25
Revenue (%)
Operating Cash Flow 2,5563,2933,6933,4963,9454,5514,942.035,366.655,827.756,328.48
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 116301,5442,2212,6981,725.891,874.182,035.212,210.072,399.96

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 8,0318,6868,2017,71910,62711,540.0812,531.6013,608.3214,777.5516,047.25
Operating Cash Flow 2,5563,2933,6933,4963,9454,5514,942.035,366.655,827.756,328.48
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 116301,5442,2212,6981,725.891,874.182,035.212,210.072,399.96
WACC
PV LFCF 1,609.821,630.571,651.591,672.881,694.45
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