Discounted Cash Flow (DCF) Analysis Levered

The Williams Companies, Inc. (WMB)

$34.94

+0.04 (+0.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 63.66 | 34.94 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 8,2017,71910,62710,96510,90711,846.3012,866.4913,974.5415,178.0116,485.12
Revenue (%)
Operating Cash Flow 3,6933,4963,9454,8896,0555,391.175,855.456,359.716,907.417,502.26
Operating Cash Flow (%)
Capital Expenditure -2,149-1,275-1,247-2,283-2,684-2,366.53-2,570.34-2,791.69-3,032.11-3,293.23
Capital Expenditure (%)
Free Cash Flow 1,5442,2212,6982,6063,3713,024.633,285.113,568.023,875.304,209.03

Weighted Average Cost Of Capital

Share price $ 34.94
Beta 1.065
Diluted Shares Outstanding 1,222.71
Cost of Debt
Tax Rate 27.83
After-tax Cost of Debt 3.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.312
Total Debt 26,438
Total Equity 42,721.66
Total Capital 69,159.66
Debt Weighting 38.23
Equity Weighting 61.77
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 8,2017,71910,62710,96510,90711,846.3012,866.4913,974.5415,178.0116,485.12
Operating Cash Flow 3,6933,4963,9454,8896,0555,391.175,855.456,359.716,907.417,502.26
Capital Expenditure -2,149-1,275-1,247-2,283-2,684-2,366.53-2,570.34-2,791.69-3,032.11-3,293.23
Free Cash Flow 1,5442,2212,6982,6063,3713,024.633,285.113,568.023,875.304,209.03
WACC
PV LFCF 2,825.702,867.202,909.312,952.032,995.38
SUM PV LFCF 14,549.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.04
Free cash flow (t + 1) 4,356.35
Terminal Value 123,060.73
Present Value of Terminal Value 87,576.78

Intrinsic Value

Enterprise Value 102,126.40
Net Debt 24,288
Equity Value 77,838.40
Shares Outstanding 1,222.71
Equity Value Per Share 63.66