Discounted Cash Flow (DCF) Analysis Unlevered

Edison International (EIX)

$65.37

-0.15 (-0.23%)
All numbers are in Millions, Currency in USD
Stock DCF: -260.23 | 65.37 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 12,32012,65712,34713,57814,90515,651.3416,435.0617,258.0218,122.1819,029.62
Revenue (%)
EBITDA 3,7241,6333,7713,4973,9943,951.104,148.944,356.694,574.854,803.93
EBITDA (%)
EBIT 1,609-3071,9681,4681,7141,530.221,606.851,687.311,771.801,860.52
EBIT (%)
Depreciation 2,1151,9401,8032,0292,2802,420.872,542.102,669.392,803.052,943.41
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 1,0911446887390432.02453.65476.37500.22525.27
Total Cash (%)
Account Receivables 1,1531,4031,3942,4272,1922,013.222,114.032,219.892,331.052,447.77
Account Receivables (%)
Inventories 242282364405420405.09425.37446.67469.04492.52
Inventories (%)
Accounts Payable 1,5031,5111,7521,9802,0022,076.672,180.652,289.852,404.512,524.91
Accounts Payable (%)
Capital Expenditure -3,828-4,509-4,877-5,484-5,503-5,744.19-6,031.83-6,333.86-6,651.02-6,984.06
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 65.37
Beta 0.742
Diluted Shares Outstanding 380
Cost of Debt
Tax Rate -17.24
After-tax Cost of Debt 3.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.007
Total Debt 29,533
Total Equity 24,840.60
Total Capital 54,373.60
Debt Weighting 54.31
Equity Weighting 45.69
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 12,32012,65712,34713,57814,90515,651.3416,435.0617,258.0218,122.1819,029.62
EBITDA 3,7241,6333,7713,4973,9943,951.104,148.944,356.694,574.854,803.93
EBIT 1,609-3071,9681,4681,7141,530.221,606.851,687.311,771.801,860.52
Tax Rate 27.40%72.27%-24.67%-53.89%-17.24%0.77%0.77%0.77%0.77%0.77%
EBIAT 1,168.18-85.142,453.452,259.062,009.441,518.371,594.401,674.231,758.071,846.10
Depreciation 2,1151,9401,8032,0292,2802,420.872,542.102,669.392,803.052,943.41
Accounts Receivable --2509-1,033235178.78-100.81-105.86-111.16-116.72
Inventories --40-82-41-1514.91-20.28-21.30-22.37-23.49
Accounts Payable -82412282274.67103.99109.19114.66120.40
Capital Expenditure -3,828-4,509-4,877-5,484-5,503-5,744.19-6,031.83-6,333.86-6,651.02-6,984.06
UFCF -544.82-2,936.14-452.55-2,041.94-971.56-1,536.59-1,912.44-2,008.20-2,108.76-2,214.35
WACC
PV UFCF -1,464.82-1,737.95-1,739.73-1,741.51-1,743.29
SUM PV UFCF -8,427.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.90
Free cash flow (t + 1) -2,258.64
Terminal Value -77,884.12
Present Value of Terminal Value -61,315.67

Intrinsic Value

Enterprise Value -69,742.96
Net Debt 29,143
Equity Value -98,885.96
Shares Outstanding 380
Equity Value Per Share -260.23