Discounted Cash Flow (DCF) Analysis Levered

Weyerhaeuser Company (WY)

$33.98

+0.86 (+2.60%)

All numbers are in Millions, Currency in USD

Stock DCF: 35.28 | 33.98 | undervalue

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	7,196	7,476	6,554	7,532	10,201	11,269.96	12,450.94	13,755.67	15,197.12	16,789.62
Revenue (%)
Operating Cash Flow	1,201	1,112	966	1,529	3,159	2,199.24	2,429.70	2,684.30	2,965.59	3,276.35
Operating Cash Flow (%)
Capital Expenditure	-419	-427	-384	-281	-590	-606.50	-670.05	-740.27	-817.84	-903.54
Capital Expenditure (%)
Free Cash Flow	782	685	582	1,248	2,569	1,592.74	1,759.64	1,944.03	2,147.75	2,372.81

Weighted Average Cost Of Capital

Share price	$ 33.98
Beta	1.495
Diluted Shares Outstanding	747.90
Cost of Debt
Tax Rate	21.38
After-tax Cost of Debt	4.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.945
Total Debt	5,123
Total Equity	25,413.61
Total Capital	30,536.61
Debt Weighting	16.78
Equity Weighting	83.22
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	7,196	7,476	6,554	7,532	10,201	11,269.96	12,450.94	13,755.67	15,197.12	16,789.62
Operating Cash Flow	1,201	1,112	966	1,529	3,159	2,199.24	2,429.70	2,684.30	2,965.59	3,276.35
Capital Expenditure	-419	-427	-384	-281	-590	-606.50	-670.05	-740.27	-817.84	-903.54
Free Cash Flow	782	685	582	1,248	2,569	1,592.74	1,759.64	1,944.03	2,147.75	2,372.81
WACC
PV LFCF						1,460.16	1,478.88	1,497.85	1,517.06	1,536.52
SUM PV LFCF										7,490.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.08
Free cash flow (t + 1)	2,420.27
Terminal Value	34,184.55
Present Value of Terminal Value	22,136.26

Intrinsic Value

Enterprise Value	29,626.72
Net Debt	3,244
Equity Value	26,382.72
Shares Outstanding	747.90
Equity Value Per Share	35.28