Discounted Cash Flow (DCF) Analysis Unlevered

ABB Ltd (ABB)

$34.3

+0.65 (+1.93%)
All numbers are in Millions, Currency in USD
Stock DCF: 76.45 | 34.3 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 27,66227,97826,13428,94529,44629,964.1330,491.3931,027.9231,573.8932,129.46
Revenue (%)
EBITDA 3,8953,3876,7976,6444,1765,353.435,447.635,543.495,641.035,740.29
EBITDA (%)
EBIT 2,9792,4265,8825,7513,3624,388.774,465.994,544.584,624.544,705.92
EBIT (%)
Depreciation 916961915893814964.66981.64998.911,016.491,034.37
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 4,1574,1105,3865,3294,8815,112.725,202.685,294.235,387.395,482.19
Total Cash (%)
Account Receivables 7,4687,4597,8057,5417,8128,156.588,300.108,446.158,594.778,746
Account Receivables (%)
Inventories 4,2844,1844,4694,8806,0285,086.285,175.785,266.855,359.535,453.84
Inventories (%)
Accounts Payable 4,4244,3534,5714,9214,9044,955.935,043.145,131.885,222.185,314.07
Accounts Payable (%)
Capital Expenditure -772-762-694-820-762-814.47-828.80-843.38-858.22-873.32
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 34.3
Beta 1.024
Diluted Shares Outstanding 1,910
Cost of Debt
Tax Rate 27.08
After-tax Cost of Debt 1.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.327
Total Debt 8,549
Total Equity 65,513
Total Capital 74,062
Debt Weighting 11.54
Equity Weighting 88.46
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 27,66227,97826,13428,94529,44629,964.1330,491.3931,027.9231,573.8932,129.46
EBITDA 3,8953,3876,7976,6444,1765,353.435,447.635,543.495,641.035,740.29
EBIT 2,9792,4265,8825,7513,3624,388.774,465.994,544.584,624.544,705.92
Tax Rate -2.55%22.72%-511.89%21.44%27.08%-88.64%-88.64%-88.64%-88.64%-88.64%
EBIAT 3,054.921,874.8735,991.414,517.722,451.668,278.978,424.658,572.898,723.748,877.24
Depreciation 916961915893814964.66981.64998.911,016.491,034.37
Accounts Receivable -9-346264-271-344.58-143.52-146.05-148.62-151.23
Inventories -100-285-411-1,148941.72-89.50-91.07-92.68-94.31
Accounts Payable --71218350-1751.9387.2188.7490.3091.89
Capital Expenditure -772-762-694-820-762-814.47-828.80-843.38-858.22-873.32
UFCF 3,198.922,111.8735,799.414,793.721,067.669,078.248,431.678,580.038,731.018,884.64
WACC
PV UFCF 8,445.667,297.566,908.526,540.226,191.55
SUM PV UFCF 35,383.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.49
Free cash flow (t + 1) 9,062.33
Terminal Value 165,069.83
Present Value of Terminal Value 115,034.31

Intrinsic Value

Enterprise Value 150,417.82
Net Debt 4,393
Equity Value 146,024.82
Shares Outstanding 1,910
Equity Value Per Share 76.45