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	11,290	11,503	11,303	14,082	14,189	15,093.34	16,055.32	17,078.62	18,167.13	19,325.02
Revenue (%)
EBITDA	2,987	2,940	2,419	4,178	3,471	3,850.27	4,095.67	4,356.71	4,634.39	4,929.76
EBITDA (%)
EBIT	1,694	1,437	899	2,697	2,019	2,077.81	2,210.24	2,351.11	2,500.96	2,660.36
EBIT (%)
Depreciation	1,293	1,503	1,520	1,481	1,452	1,772.46	1,885.43	2,005.60	2,133.43	2,269.41
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	2,355	2,434	2,672	2,148	1,671	2,797.97	2,976.30	3,165.99	3,367.78	3,582.43
Total Cash (%)
Account Receivables	1,940	1,836	2,133	2,004	1,664	2,353.77	2,503.79	2,663.37	2,833.12	3,013.69
Account Receivables (%)
Inventories	2,037	2,320	2,438	2,481	2,904	2,954.23	3,142.52	3,342.81	3,555.87	3,782.50
Inventories (%)
Accounts Payable	1,456	1,587	1,174	1,612	1,804	1,848.65	1,966.48	2,091.81	2,225.14	2,366.96
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	11,290	11,503	11,303	14,082	14,189	15,093.34	16,055.32	17,078.62	18,167.13	19,325.02
EBITDA	2,987	2,940	2,419	4,178	3,471	3,850.27	4,095.67	4,356.71	4,634.39	4,929.76
EBIT	1,694	1,437	899	2,697	2,019	2,077.81	2,210.24	2,351.11	2,500.96	2,660.36
Tax Rate	29.08%	21.05%	17.82%	20.48%	26.77%	23.04%	23.04%	23.04%	23.04%	23.04%
EBIAT	1,201.47	1,134.47	738.83	2,144.55	1,478.58	1,599.10	1,701.02	1,809.43	1,924.76	2,047.43
Depreciation	1,293	1,503	1,520	1,481	1,452	1,772.46	1,885.43	2,005.60	2,133.43	2,269.41
Accounts Receivable	-	104	-297	129	340	-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	-413	438	192	44.65	117.82	125.33	133.32	141.82
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	184.47	602.47	53.83	2,512.55	1,435.58	477.23	1,026.83	1,092.27	1,161.89	1,235.94
WACC
PV UFCF						444.14	889.38	880.47	871.64	862.91
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