Discounted Cash Flow (DCF) Analysis Unlevered

General Electric Company (GE)

$82.18

+0.07 (+0.09%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.07 | 82.18 | 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	120,468	121,616	95,215	79,619	74,196	66,044.36	58,788.32	52,329.46	46,580.22	41,462.63
Revenue (%)
EBITDA	1,179	-8,489	5,569	14,521	-1,921	2,046.90	1,822.02	1,621.84	1,443.65	1,285.04
EBITDA (%)
EBIT	-3,960	-16,713	-26	8,503	-4,930	-1,720.04	-1,531.07	-1,362.86	-1,213.12	-1,079.84
EBIT (%)
Depreciation	5,139	8,224	5,595	6,018	3,009	3,766.94	3,353.08	2,984.69	2,656.78	2,364.89
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	81,995	68,363	84,915	43,949	28,067	40,483.29	36,035.54	32,076.45	28,552.33	25,415.40
Total Cash (%)
Account Receivables	41,075	33,791	27,047	27,050	20,927	20,139.14	17,926.53	15,957.01	14,203.87	12,643.34
Account Receivables (%)
Inventories	21,923	19,271	14,104	15,890	15,847	11,910.78	10,602.19	9,437.37	8,400.52	7,477.59
Inventories (%)
Accounts Payable	15,153	17,153	15,926	16,476	16,243	11,358.92	10,110.96	9,000.10	8,011.29	7,131.12
Accounts Payable (%)
Capital Expenditure	-7,920	-8,056	-6,095	-3,403	-1,361	-3,395.77	-3,022.69	-2,690.60	-2,394.99	-2,131.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 82.18
Beta	1.227
Diluted Shares Outstanding	1,098
Cost of Debt
Tax Rate	-77.03
After-tax Cost of Debt	4.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.433
Total Debt	38,032
Total Equity	90,233.64
Total Capital	128,265.64
Debt Weighting	29.65
Equity Weighting	70.35
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	120,468	121,616	95,215	79,619	74,196	66,044.36	58,788.32	52,329.46	46,580.22	41,462.63
EBITDA	1,179	-8,489	5,569	14,521	-1,921	2,046.90	1,822.02	1,621.84	1,443.65	1,285.04
EBIT	-3,960	-16,713	-26	8,503	-4,930	-1,720.04	-1,531.07	-1,362.86	-1,213.12	-1,079.84
Tax Rate	34.18%	-11.03%	533.33%	-9.76%	-77.03%	93.94%	93.94%	93.94%	93.94%	93.94%
EBIAT	-2,606.37	-18,556.63	112.67	9,332.52	-8,727.56	-104.24	-92.78	-82.59	-73.52	-65.44
Depreciation	5,139	8,224	5,595	6,018	3,009	3,766.94	3,353.08	2,984.69	2,656.78	2,364.89
Accounts Receivable	-	7,284	6,744	-3	6,123	787.86	2,212.61	1,969.52	1,753.14	1,560.53
Inventories	-	2,652	5,167	-1,786	43	3,936.22	1,308.59	1,164.82	1,036.85	922.93
Accounts Payable	-	2,000	-1,227	550	-233	-4,884.08	-1,247.96	-1,110.85	-988.81	-880.17
Capital Expenditure	-7,920	-8,056	-6,095	-3,403	-1,361	-3,395.77	-3,022.69	-2,690.60	-2,394.99	-2,131.86
UFCF	-5,387.37	-6,452.62	10,296.67	10,708.52	-1,146.56	106.93	2,510.86	2,235	1,989.45	1,770.87
WACC
PV UFCF						98.92	2,148.67	1,769.29	1,456.90	1,199.66
SUM PV UFCF										6,673.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.10
Free cash flow (t + 1)	1,806.29
Terminal Value	29,611.34
Present Value of Terminal Value	20,059.94

Intrinsic Value

Enterprise Value	26,733.39
Net Debt	22,262
Equity Value	4,471.39
Shares Outstanding	1,098
Equity Value Per Share	4.07