Discounted Cash Flow (DCF) Analysis Levered

United States Steel Corporation (X)

$23.99

-1.24 (-4.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 36.40 | 23.99 | 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	12,250	14,178	12,937	9,741	20,275	24,858.28	30,477.64	37,367.28	45,814.37	56,170.97
Revenue (%)
Operating Cash Flow	802	938	682	138	4,090	1,989.85	2,439.66	2,991.16	3,667.33	4,496.36
Operating Cash Flow (%)
Capital Expenditure	-505	-1,001	-1,252	-725	-863	-1,618.75	-1,984.68	-2,433.33	-2,983.39	-3,657.81
Capital Expenditure (%)
Free Cash Flow	297	-63	-570	-587	3,227	371.10	454.99	557.84	683.94	838.55

Weighted Average Cost Of Capital

Share price	$ 23.99
Beta	2.003
Diluted Shares Outstanding	196.72
Cost of Debt
Tax Rate	3.91
After-tax Cost of Debt	7.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.339
Total Debt	4,085
Total Equity	4,719.34
Total Capital	8,804.34
Debt Weighting	46.40
Equity Weighting	53.60
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	12,250	14,178	12,937	9,741	20,275	24,858.28	30,477.64	37,367.28	45,814.37	56,170.97
Operating Cash Flow	802	938	682	138	4,090	1,989.85	2,439.66	2,991.16	3,667.33	4,496.36
Capital Expenditure	-505	-1,001	-1,252	-725	-863	-1,618.75	-1,984.68	-2,433.33	-2,983.39	-3,657.81
Free Cash Flow	297	-63	-570	-587	3,227	371.10	454.99	557.84	683.94	838.55
WACC
PV LFCF						337.27	375.82	418.77	466.63	519.96
SUM PV LFCF										2,118.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.03
Free cash flow (t + 1)	855.32
Terminal Value	10,651.54
Present Value of Terminal Value	6,604.76

Intrinsic Value

Enterprise Value	8,723.20
Net Debt	1,563
Equity Value	7,160.20
Shares Outstanding	196.72
Equity Value Per Share	36.40