Discounted Cash Flow (DCF) Analysis Unlevered

Corning Incorporated (GLW)

$33.23

+0.41 (+1.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.60 | 33.23 | 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 11,29011,50311,30314,08214,18915,093.3416,055.3217,078.6218,167.1319,325.02
Revenue (%)
EBITDA 2,9872,9402,4194,1783,4713,850.274,095.674,356.714,634.394,929.76
EBITDA (%)
EBIT 1,6941,4378992,6972,0192,077.812,210.242,351.112,500.962,660.36
EBIT (%)
Depreciation 1,2931,5031,5201,4811,4521,772.461,885.432,005.602,133.432,269.41
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 2,3552,4342,6722,1481,6712,797.972,976.303,165.993,367.783,582.43
Total Cash (%)
Account Receivables 1,9401,8362,1332,0041,6642,353.772,503.792,663.372,833.123,013.69
Account Receivables (%)
Inventories 2,0372,3202,4382,4812,9042,954.233,142.523,342.813,555.873,782.50
Inventories (%)
Accounts Payable 1,4561,5871,1741,6121,8041,848.651,966.482,091.812,225.142,366.96
Accounts Payable (%)
Capital Expenditure -2,310-1,987-1,377-1,637-1,604-2,198.99-2,339.14-2,488.23-2,646.81-2,815.51
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 33.23
Beta 1.068
Diluted Shares Outstanding 844
Cost of Debt
Tax Rate 26.77
After-tax Cost of Debt 3.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.524
Total Debt 6,911
Total Equity 28,046.12
Total Capital 34,957.12
Debt Weighting 19.77
Equity Weighting 80.23
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 11,29011,50311,30314,08214,18915,093.3416,055.3217,078.6218,167.1319,325.02
EBITDA 2,9872,9402,4194,1783,4713,850.274,095.674,356.714,634.394,929.76
EBIT 1,6941,4378992,6972,0192,077.812,210.242,351.112,500.962,660.36
Tax Rate 29.08%21.05%17.82%20.48%26.77%23.04%23.04%23.04%23.04%23.04%
EBIAT 1,201.471,134.47738.832,144.551,478.581,599.101,701.021,809.431,924.762,047.43
Depreciation 1,2931,5031,5201,4811,4521,772.461,885.432,005.602,133.432,269.41
Accounts Receivable -104-297129340-689.77-150.02-159.58-169.75-180.57
Inventories --283-118-43-423-50.23-188.29-200.29-213.06-226.63
Accounts Payable -131-41343819244.65117.82125.33133.32141.82
Capital Expenditure -2,310-1,987-1,377-1,637-1,604-2,198.99-2,339.14-2,488.23-2,646.81-2,815.51
UFCF 184.47602.4753.832,512.551,435.58477.231,026.831,092.271,161.891,235.94
WACC
PV UFCF 444.14889.38880.47871.64862.91
SUM PV UFCF 3,948.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.45
Free cash flow (t + 1) 1,260.66
Terminal Value 23,131.42
Present Value of Terminal Value 16,149.92

Intrinsic Value

Enterprise Value 20,098.45
Net Debt 5,240
Equity Value 14,858.45
Shares Outstanding 844
Equity Value Per Share 17.60