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 7,1967,4766,5547,53210,20111,269.9612,450.9413,755.6715,197.1216,789.62
Revenue (%)
Operating Cash Flow 1,2011,1129661,5293,1592,199.242,429.702,684.302,965.593,276.35
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 7826855821,2482,5691,592.741,759.641,944.032,147.752,372.81

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 7,1967,4766,5547,53210,20111,269.9612,450.9413,755.6715,197.1216,789.62
Operating Cash Flow 1,2011,1129661,5293,1592,199.242,429.702,684.302,965.593,276.35
Capital Expenditure -419-427-384-281-590-606.50-670.05-740.27-817.84-903.54
Free Cash Flow 7826855821,2482,5691,592.741,759.641,944.032,147.752,372.81
WACC
PV LFCF 1,460.161,478.881,497.851,517.061,536.52
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