Discounted Cash Flow (DCF) Analysis Unlevered

Halliburton Company (HAL)

$29.6

+0.18 (+0.61%)

All numbers are in Millions, Currency in USD

Stock DCF: -7.33 | 29.6 | 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	23,995	22,408	14,445	15,295	20,297	20,116.23	19,937.08	19,759.52	19,583.54	19,409.13
Revenue (%)
EBITDA	2,367	-555	-1,660	2,614	3,402	1,196.82	1,186.16	1,175.59	1,165.12	1,154.75
EBITDA (%)
EBIT	2,367	-555	-2,718	1,493.74	1,915.38	-276.56	-274.10	-271.66	-269.24	-266.84
EBIT (%)
Depreciation	-	-	1,058	1,120.26	1,486.62	1,473.38	1,460.26	1,447.25	1,434.36	1,421.59
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	2,008	2,268	2,563	3,044	2,346	2,723.47	2,699.21	2,675.17	2,651.35	2,627.73
Total Cash (%)
Account Receivables	5,234	4,577	3,071	3,666	4,627	4,436.18	4,396.67	4,357.51	4,318.71	4,280.24
Account Receivables (%)
Inventories	3,028	3,139	2,349	2,361	2,923	2,925.98	2,899.93	2,874.10	2,848.50	2,823.13
Inventories (%)
Accounts Payable	3,018	2,432	1,573	2,353	3,121	2,618.38	2,595.06	2,571.95	2,549.04	2,526.34
Accounts Payable (%)
Capital Expenditure	-2,026	-1,530	-728	-799	-1,011	-1,227.74	-1,216.80	-1,205.97	-1,195.23	-1,184.58
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 29.6
Beta	2.140
Diluted Shares Outstanding	908
Cost of Debt
Tax Rate	25.50
After-tax Cost of Debt	3.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.481
Total Debt	8,943
Total Equity	26,876.80
Total Capital	35,819.80
Debt Weighting	24.97
Equity Weighting	75.03
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	23,995	22,408	14,445	15,295	20,297	20,116.23	19,937.08	19,759.52	19,583.54	19,409.13
EBITDA	2,367	-555	-1,660	2,614	3,402	1,196.82	1,186.16	1,175.59	1,165.12	1,154.75
EBIT	2,367	-555	-2,718	1,493.74	1,915.38	-276.56	-274.10	-271.66	-269.24	-266.84
Tax Rate	8.71%	-0.80%	8.54%	-16.37%	25.50%	5.11%	5.11%	5.11%	5.11%	5.11%
EBIAT	2,160.83	-559.45	-2,485.87	1,738.33	1,427	-262.42	-260.08	-257.77	-255.47	-253.19
Depreciation	-	-	1,058	1,120.26	1,486.62	1,473.38	1,460.26	1,447.25	1,434.36	1,421.59
Accounts Receivable	-	657	1,506	-595	-961	190.82	39.51	39.16	38.81	38.46
Inventories	-	-111	790	-12	-562	-2.98	26.06	25.83	25.60	25.37
Accounts Payable	-	-586	-859	780	768	-502.62	-23.32	-23.11	-22.91	-22.70
Capital Expenditure	-2,026	-1,530	-728	-799	-1,011	-1,227.74	-1,216.80	-1,205.97	-1,195.23	-1,184.58
UFCF	134.83	-2,129.45	-718.87	2,232.58	1,147.62	-331.56	25.62	25.39	25.17	24.94
WACC
PV UFCF						-299	20.84	18.62	16.64	14.88
SUM PV UFCF										-228.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.89
Free cash flow (t + 1)	25.44
Terminal Value	286.18
Present Value of Terminal Value	170.68

Intrinsic Value

Enterprise Value	-57.34
Net Debt	6,597
Equity Value	-6,654.34
Shares Outstanding	908
Equity Value Per Share	-7.33