Discounted Cash Flow (DCF) Analysis Unlevered

Entergy Corporation (ETR)

$117.08

+1.68 (+1.46%)
All numbers are in Millions, Currency in USD
Stock DCF: -809.82 | 117.08 | 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 11,074.4811,009.4510,878.6710,113.6411,742.9011,957.2612,175.5412,397.8112,624.1312,854.58
Revenue (%)
EBITDA 3,708.842,573.634,013.162,134.824,387.733,640.513,706.973,774.643,843.543,913.71
EBITDA (%)
EBIT 1,630.27533.081,830.842,070.812,144.791,796.761,829.561,862.961,896.971,931.60
EBIT (%)
Depreciation 2,078.582,040.562,182.3164.012,242.941,843.751,877.411,911.681,946.581,982.11
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 781.27480.97425.721,759.10713.51928.03944.97962.22979.79997.68
Total Cash (%)
Account Receivables 1,212.951,114.411,208.591,285.731,370.361,352.781,377.471,402.621,428.221,454.29
Account Receivables (%)
Inventories 905.86870.15970.46172.931,196.09882.44898.55914.95931.65948.66
Inventories (%)
Accounts Payable 1,452.221,496.061,499.862,739.442,610.132,147.602,186.802,226.722,267.372,308.76
Accounts Payable (%)
Capital Expenditure -4,001.62-4,271.22-4,631.50-3,961.30-4,599.45-4,683.41-4,768.91-4,855.96-4,944.61-5,034.87
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 117.08
Beta 0.633
Diluted Shares Outstanding 202
Cost of Debt
Tax Rate 14.61
After-tax Cost of Debt 2.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.499
Total Debt 27,082.08
Total Equity 23,650.55
Total Capital 50,732.63
Debt Weighting 53.38
Equity Weighting 46.62
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 11,074.4811,009.4510,878.6710,113.6411,742.9011,957.2612,175.5412,397.8112,624.1312,854.58
EBITDA 3,708.842,573.634,013.162,134.824,387.733,640.513,706.973,774.643,843.543,913.71
EBIT 1,630.27533.081,830.842,070.812,144.791,796.761,829.561,862.961,896.971,931.60
Tax Rate 56.06%594.95%-15.60%-9.45%14.61%128.11%128.11%128.11%128.11%128.11%
EBIAT 716.42-2,638.472,116.512,266.601,831.48-505.09-514.31-523.70-533.26-542.99
Depreciation 2,078.582,040.562,182.3164.012,242.941,843.751,877.411,911.681,946.581,982.11
Accounts Receivable -98.55-94.19-77.14-84.6317.58-24.69-25.15-25.60-26.07
Inventories -35.72-100.32797.53-1,023.16313.65-16.11-16.40-16.70-17.01
Accounts Payable -43.843.801,239.58-129.30-462.5339.2039.9240.6541.39
Capital Expenditure -4,001.62-4,271.22-4,631.51-3,961.30-6,422.11-4,683.41-4,768.91-4,855.96-4,944.61-5,034.87
UFCF -1,206.62-4,691.02-523.38329.28-1,762.11-3,476.05-3,407.41-3,469.61-3,532.95-3,597.44
WACC
PV UFCF -3,328.60-3,124.45-3,046.53-2,970.55-2,896.46
SUM PV UFCF -15,366.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.43
Free cash flow (t + 1) -3,669.39
Terminal Value -151,003.78
Present Value of Terminal Value -121,579.80

Intrinsic Value

Enterprise Value -136,946.38
Net Debt 26,639.52
Equity Value -163,585.90
Shares Outstanding 202
Equity Value Per Share -809.82