Discounted Cash Flow (DCF) Analysis Levered
World Wrestling Entertainment, Inc. (WWE)
$100.22
-1.43 (-1.41%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 960.44 | 974.21 | 1,095.17 | 1,291.52 | 1,428.33 | 1,579.63 | 1,746.96 | 1,932.02 | 2,136.68 | 2,363.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 121.69 | 319.87 | 178.60 | 325.63 | 310.75 | 343.67 | 380.08 | 420.34 | 464.86 | 514.10 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -69.09 | -27.66 | -39.23 | -199.89 | -103.88 | -114.89 | -127.06 | -140.52 | -155.40 | -171.86 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 52.61 | 292.21 | 139.36 | 125.74 | 206.87 | 228.78 | 253.02 | 279.82 | 309.46 | 342.24 |
Weighted Average Cost Of Capital
| Share price | $ 100.22 |
|---|---|
| Beta | 1.190 |
| Diluted Shares Outstanding | 88.16 |
| Cost of Debt | |
| Tax Rate | 26.02 |
| After-tax Cost of Debt | 3.70% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.308 |
| Total Debt | 628.80 |
| Total Equity | 8,835.70 |
| Total Capital | 9,464.50 |
| Debt Weighting | 6.64 |
| Equity Weighting | 93.36 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 960.44 | 974.21 | 1,095.17 | 1,291.52 | 1,428.33 | 1,579.63 | 1,746.96 | 1,932.02 | 2,136.68 | 2,363.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 121.69 | 319.87 | 178.60 | 325.63 | 310.75 | 343.67 | 380.08 | 420.34 | 464.86 | 514.10 |
| Capital Expenditure | -69.09 | -27.66 | -39.23 | -199.89 | -103.88 | -114.89 | -127.06 | -140.52 | -155.40 | -171.86 |
| Free Cash Flow | 52.61 | 292.21 | 139.36 | 125.74 | 206.87 | 228.78 | 253.02 | 279.82 | 309.46 | 342.24 |
| WACC | ||||||||||
| PV LFCF | 206.87 | 210.01 | 213.20 | 216.43 | 219.71 | 223.05 | ||||
| SUM PV LFCF | 1,082.40 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.94 |
| Free cash flow (t + 1) | 349.09 |
| Terminal Value | 5,030.08 |
| Present Value of Terminal Value | 3,278.22 |
Intrinsic Value
| Enterprise Value | 4,360.61 |
|---|---|
| Net Debt | 431.20 |
| Equity Value | 3,929.41 |
| Shares Outstanding | 88.16 |
| Equity Value Per Share | 44.57 |