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 12,25014,17812,9379,74120,27524,858.2830,477.6437,367.2845,814.3756,170.97
Revenue (%)
Operating Cash Flow 8029386821384,0901,989.852,439.662,991.163,667.334,496.36
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 297-63-570-5873,227371.10454.99557.84683.94838.55

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 12,25014,17812,9379,74120,27524,858.2830,477.6437,367.2845,814.3756,170.97
Operating Cash Flow 8029386821384,0901,989.852,439.662,991.163,667.334,496.36
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 297-63-570-5873,227371.10454.99557.84683.94838.55
WACC
PV LFCF 337.27375.82418.77466.63519.96
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