Discounted Cash Flow (DCF) Analysis Unlevered

Crown Castle Inc. (CCI)

$114.91

+1.92 (+1.70%)

All numbers are in Millions, Currency in USD

Stock DCF: 103.64 | 114.91 | overvalue

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	5,423	5,763	5,840	6,340	6,986	7,446.32	7,936.97	8,459.95	9,017.39	9,611.56
Revenue (%)
EBITDA	2,838	3,115	3,350	3,393	4,071	4,103.49	4,373.88	4,662.08	4,969.27	5,296.71
EBITDA (%)
EBIT	1,310	1,543	1,742	1,749	2,364	2,117.51	2,257.04	2,405.76	2,564.28	2,733.24
EBIT (%)
Depreciation	1,528	1,572	1,608	1,644	1,707	1,985.98	2,116.84	2,256.32	2,404.99	2,563.46
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	277	323	232	292	156	320.55	341.67	364.18	388.18	413.76
Total Cash (%)
Account Receivables	501	471	431	543	720	650.25	693.09	738.76	787.44	839.33
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	313	302	230	246	236	330.75	352.54	375.77	400.53	426.92
Accounts Payable (%)
Capital Expenditure	-1,741	-2,057	-1,624	-1,229	-1,310	-1,991.77	-2,123.01	-2,262.90	-2,412.01	-2,570.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 114.91
Beta	0.662
Diluted Shares Outstanding	434
Cost of Debt
Tax Rate	0.95
After-tax Cost of Debt	2.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.910
Total Debt	27,960
Total Equity	49,870.94
Total Capital	77,830.94
Debt Weighting	35.92
Equity Weighting	64.08
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	5,423	5,763	5,840	6,340	6,986	7,446.32	7,936.97	8,459.95	9,017.39	9,611.56
EBITDA	2,838	3,115	3,350	3,393	4,071	4,103.49	4,373.88	4,662.08	4,969.27	5,296.71
EBIT	1,310	1,543	1,742	1,749	2,364	2,117.51	2,257.04	2,405.76	2,564.28	2,733.24
Tax Rate	2.75%	2.38%	1.86%	7.04%	0.95%	3.00%	3.00%	3.00%	3.00%	3.00%
EBIAT	1,273.93	1,506.22	1,709.62	1,625.87	2,341.63	2,054.06	2,189.41	2,333.67	2,487.44	2,651.34
Depreciation	1,528	1,572	1,608	1,644	1,707	1,985.98	2,116.84	2,256.32	2,404.99	2,563.46
Accounts Receivable	-	30	40	-112	-177	69.75	-42.85	-45.67	-48.68	-51.89
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-11	-72	16	-10	94.75	21.79	23.23	24.76	26.39
Capital Expenditure	-1,741	-2,057	-1,624	-1,229	-1,310	-1,991.77	-2,123.01	-2,262.90	-2,412.01	-2,570.94
UFCF	1,060.93	1,040.22	1,661.62	1,944.87	2,551.63	2,212.77	2,162.18	2,304.65	2,456.51	2,618.37
WACC
PV UFCF						2,101.60	1,950.38	1,974.44	1,998.80	2,023.47
SUM PV UFCF										10,048.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.29
Free cash flow (t + 1)	2,670.74
Terminal Value	81,177.53
Present Value of Terminal Value	62,733.60

Intrinsic Value

Enterprise Value	72,782.28
Net Debt	27,804
Equity Value	44,978.28
Shares Outstanding	434
Equity Value Per Share	103.64