Discounted Cash Flow (DCF) Analysis Unlevered

General Dynamics Corporation (GD)

$222.33

+5.73 (+2.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 226.10 | 222.33 | undervalue

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 30,97336,19339,35037,92538,46940,718.3943,099.3145,619.4548,286.9551,110.42
Revenue (%)
EBITDA 4,6355,2095,5035,1055,1945,725.356,060.136,414.486,789.557,186.56
EBITDA (%)
EBIT 4,1944,4464,6744,2274,3044,889.215,175.105,477.705,7986,137.02
EBIT (%)
Depreciation 441763829878890836.14885.03936.78991.561,049.54
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 2,9839639022,8241,6032,133.422,258.162,390.212,529.972,677.90
Total Cash (%)
Account Receivables 8,85710,33511,40111,18511,53911,858.2112,551.5913,285.5214,062.3614,884.63
Account Receivables (%)
Inventories 5,3035,9776,3065,7455,3406,408.316,783.037,179.657,599.468,043.82
Inventories (%)
Accounts Payable 3,2073,1793,1622,9523,1673,517.223,722.883,940.574,170.994,414.88
Accounts Payable (%)
Capital Expenditure -428-690-987-967-887-867.47-918.19-971.88-1,028.71-1,088.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 222.33
Beta 0.942
Diluted Shares Outstanding 280.60
Cost of Debt
Tax Rate 15.90
After-tax Cost of Debt 2.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.573
Total Debt 13,175
Total Equity 62,385.80
Total Capital 75,560.80
Debt Weighting 17.44
Equity Weighting 82.56
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 30,97336,19339,35037,92538,46940,718.3943,099.3145,619.4548,286.9551,110.42
EBITDA 4,6355,2095,5035,1055,1945,725.356,060.136,414.486,789.557,186.56
EBIT 4,1944,4464,6744,2274,3044,889.215,175.105,477.705,7986,137.02
Tax Rate 28.57%18.12%17.09%15.28%15.90%18.99%18.99%18.99%18.99%18.99%
EBIAT 2,995.573,640.603,875.353,581.303,619.453,960.684,192.274,437.404,696.874,971.51
Depreciation 441763829878890836.14885.03936.78991.561,049.54
Accounts Receivable --1,478-1,066216-354-319.21-693.38-733.93-776.84-822.27
Inventories --674-329561405-1,068.31-374.71-396.62-419.81-444.36
Accounts Payable --28-17-210215350.22205.66217.69230.42243.89
Capital Expenditure -428-690-987-967-887-867.47-918.19-971.88-1,028.71-1,088.86
UFCF 3,008.571,533.602,305.354,059.303,888.452,892.053,296.673,489.443,693.473,909.44
WACC
PV UFCF 2,709.682,894.032,870.092,846.362,822.81
SUM PV UFCF 14,142.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.73
Free cash flow (t + 1) 3,987.63
Terminal Value 84,305.10
Present Value of Terminal Value 60,872.52

Intrinsic Value

Enterprise Value 75,015.50
Net Debt 11,572
Equity Value 63,443.50
Shares Outstanding 280.60
Equity Value Per Share 226.10