Discounted Cash Flow (DCF) Analysis Levered

Weyerhaeuser Company (WY)

$29.66

+0.20 (+0.68%)

All numbers are in Millions, Currency in USD

Stock DCF: 37.40 | 29.66 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	7,476	6,554	7,532	10,201	10,184	11,147.87	12,202.97	13,357.92	14,622.19	16,006.11
Revenue (%)
Operating Cash Flow	1,112	966	1,529	3,159	2,832	2,423.31	2,652.66	2,903.73	3,178.55	3,479.39
Operating Cash Flow (%)
Capital Expenditure	-427	-384	-281	-590	-415	-560.96	-614.06	-672.17	-735.79	-805.43
Capital Expenditure (%)
Free Cash Flow	685	582	1,248	2,569	2,417	1,862.34	2,038.61	2,231.55	2,442.76	2,673.95

Weighted Average Cost Of Capital

Share price	$ 29.66
Beta	1.492
Diluted Shares Outstanding	742.95
Cost of Debt
Tax Rate	18.44
After-tax Cost of Debt	4.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.787
Total Debt	5,136
Total Equity	22,035.99
Total Capital	27,171.99
Debt Weighting	18.90
Equity Weighting	81.10
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	7,476	6,554	7,532	10,201	10,184	11,147.87	12,202.97	13,357.92	14,622.19	16,006.11
Operating Cash Flow	1,112	966	1,529	3,159	2,832	2,423.31	2,652.66	2,903.73	3,178.55	3,479.39
Capital Expenditure	-427	-384	-281	-590	-415	-560.96	-614.06	-672.17	-735.79	-805.43
Free Cash Flow	685	582	1,248	2,569	2,417	1,862.34	2,038.61	2,231.55	2,442.76	2,673.95
WACC
PV LFCF						1,551.51	1,550.16	1,548.81	1,547.46	1,546.12
SUM PV LFCF										8,484.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.56
Free cash flow (t + 1)	2,727.43
Terminal Value	36,077.16
Present Value of Terminal Value	22,854.52

Intrinsic Value

Enterprise Value	31,338.93
Net Debt	3,555
Equity Value	27,783.93
Shares Outstanding	742.95
Equity Value Per Share	37.40