Discounted Cash Flow (DCF) Analysis Unlevered

General Electric Company (GE)

$84.66

-2.22 (-2.56%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.23 | 84.66 | 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 120,468121,61695,21579,61974,19666,044.3658,788.3252,329.4646,580.2241,462.63
Revenue (%)
EBITDA 1,179-8,4895,56914,521-1,9212,046.901,822.021,621.841,443.651,285.04
EBITDA (%)
EBIT -3,960-16,713-268,503-4,930-1,720.04-1,531.07-1,362.86-1,213.12-1,079.84
EBIT (%)
Depreciation 5,1398,2245,5956,0183,0093,766.943,353.082,984.692,656.782,364.89
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 81,99568,36384,91543,94928,06740,483.2936,035.5432,076.4528,552.3325,415.40
Total Cash (%)
Account Receivables 41,07533,79127,04727,05020,92720,139.1417,926.5315,957.0114,203.8712,643.34
Account Receivables (%)
Inventories 21,92319,27114,10415,89015,84711,910.7810,602.199,437.378,400.527,477.59
Inventories (%)
Accounts Payable 15,15317,15315,92616,47616,24311,358.9210,110.969,000.108,011.297,131.12
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 $ 84.66
Beta 1.218
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 9.346
Total Debt 38,032
Total Equity 92,956.68
Total Capital 130,988.68
Debt Weighting 29.03
Equity Weighting 70.97
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 120,468121,61695,21579,61974,19666,044.3658,788.3252,329.4646,580.2241,462.63
EBITDA 1,179-8,4895,56914,521-1,9212,046.901,822.021,621.841,443.651,285.04
EBIT -3,960-16,713-268,503-4,930-1,720.04-1,531.07-1,362.86-1,213.12-1,079.84
Tax Rate 34.18%-11.03%533.33%-9.76%-77.03%93.94%93.94%93.94%93.94%93.94%
EBIAT -2,606.37-18,556.63112.679,332.52-8,727.56-104.24-92.78-82.59-73.52-65.44
Depreciation 5,1398,2245,5956,0183,0093,766.943,353.082,984.692,656.782,364.89
Accounts Receivable -7,2846,744-36,123787.862,212.611,969.521,753.141,560.53
Inventories -2,6525,167-1,786433,936.221,308.591,164.821,036.85922.93
Accounts Payable -2,000-1,227550-233-4,884.08-1,247.96-1,110.85-988.81-880.17
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 -5,387.37-6,452.6210,296.6710,708.52-1,146.56106.932,510.862,2351,989.451,770.87
WACC
PV UFCF 98.962,150.271,771.261,459.061,201.88
SUM PV UFCF 6,681.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.06
Free cash flow (t + 1) 1,806.29
Terminal Value 29,806.79
Present Value of Terminal Value 20,229.75

Intrinsic Value

Enterprise Value 26,911.17
Net Debt 22,262
Equity Value 4,649.17
Shares Outstanding 1,098
Equity Value Per Share 4.23