Discounted Cash Flow (DCF) Analysis Unlevered

Eversource Energy (ES)

$62.58

-0.76 (-1.19%)

All numbers are in Millions, Currency in USD

Stock DCF: -99.00 | 62.58 | 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	8,448.20	8,526.47	8,904.43	9,863.09	12,289.34	13,540.53	14,919.11	16,438.05	18,111.63	19,955.61
Revenue (%)
EBITDA	2,900.25	3,043.57	3,256.38	3,489.58	4,187.38	4,767.60	5,253	5,787.81	6,377.08	7,026.34
EBITDA (%)
EBIT	1,828.30	1,962.91	2,097.32	2,154.60	2,544.24	2,999.62	3,305.01	3,641.50	4,012.25	4,420.74
EBIT (%)
Depreciation	1,071.96	1,080.66	1,159.06	1,334.97	1,643.14	1,767.98	1,947.98	2,146.31	2,364.83	2,605.60
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	108.07	15.43	106.60	66.77	374.60	172.85	190.44	209.83	231.20	254.73
Total Cash (%)
Account Receivables	1,170.34	1,170.39	1,428.95	1,436.95	1,756.11	1,963	2,162.85	2,383.05	2,625.68	2,893
Account Receivables (%)
Inventories	238.04	235.50	265.60	267.50	374.40	387.83	427.32	470.82	518.76	571.57
Inventories (%)
Accounts Payable	1,119.99	1,147.87	1,370.65	1,672.23	2,113.91	2,065.42	2,275.70	2,507.40	2,762.68	3,043.95
Accounts Payable (%)
Capital Expenditure	-2,523.37	-2,911.49	-2,943	-3,175.08	-3,441.85	-4,258.89	-4,692.49	-5,170.24	-5,696.63	-6,276.62
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 62.58
Beta	0.499
Diluted Shares Outstanding	347.25
Cost of Debt
Tax Rate	24.71
After-tax Cost of Debt	2.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.793
Total Debt	22,940.03
Total Equity	21,730.70
Total Capital	44,670.73
Debt Weighting	51.35
Equity Weighting	48.65
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	8,448.20	8,526.47	8,904.43	9,863.09	12,289.34	13,540.53	14,919.11	16,438.05	18,111.63	19,955.61
EBITDA	2,900.25	3,043.57	3,256.38	3,489.58	4,187.38	4,767.60	5,253	5,787.81	6,377.08	7,026.34
EBIT	1,828.30	1,962.91	2,097.32	2,154.60	2,544.24	2,999.62	3,305.01	3,641.50	4,012.25	4,420.74
Tax Rate	22.30%	23.61%	22.69%	22.37%	24.71%	23.14%	23.14%	23.14%	23.14%	23.14%
EBIAT	1,420.57	1,499.40	1,621.45	1,672.58	1,915.54	2,305.58	2,540.32	2,798.95	3,083.92	3,397.90
Depreciation	1,071.96	1,080.66	1,159.06	1,334.97	1,643.14	1,767.98	1,947.98	2,146.31	2,364.83	2,605.60
Accounts Receivable	-	-0.05	-258.56	-8	-319.16	-206.89	-199.86	-220.20	-242.62	-267.32
Inventories	-	2.54	-30.10	-1.90	-106.90	-13.43	-39.49	-43.51	-47.94	-52.82
Accounts Payable	-	27.88	222.77	301.58	441.68	-48.48	210.28	231.69	255.28	281.27
Capital Expenditure	-2,523.37	-2,911.49	-2,943	-3,175.08	-3,441.85	-4,258.89	-4,692.49	-5,170.24	-5,696.63	-6,276.62
UFCF	-30.85	-301.06	-228.38	124.16	132.45	-454.13	-233.25	-257	-283.16	-311.99
WACC
PV UFCF						-434.78	-213.80	-225.53	-237.90	-250.96
SUM PV UFCF										-1,362.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.45
Free cash flow (t + 1)	-318.23
Terminal Value	-12,988.93
Present Value of Terminal Value	-10,447.95

Intrinsic Value

Enterprise Value	-11,810.92
Net Debt	22,565.42
Equity Value	-34,376.34
Shares Outstanding	347.25
Equity Value Per Share	-99.00