Discounted Cash Flow (DCF) Analysis Unlevered

Huntsman Corporation (HUN)

$24.67

-0.23 (-0.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 29.05 | 24.67 | undervalue

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 9,3796,7976,0188,4538,0237,950.487,878.627,807.417,736.847,666.90
Revenue (%)
EBITDA 1,4625025601,0101,141929.40921912.67904.42896.25
EBITDA (%)
EBIT 1,119232277714860621.93616.31610.74605.22599.75
EBIT (%)
Depreciation 343270283296281307.46304.68301.93299.20296.50
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 3405251,5931,041654926.81918.43910.13901.90893.75
Total Cash (%)
Account Receivables 1,2729539101,5198341,130.071,119.861,109.741,099.711,089.77
Account Receivables (%)
Inventories 1,1349148481,2019951,053.261,043.741,034.311,024.961,015.69
Inventories (%)
Accounts Payable 9618228761,2089611,004.39995.31986.31977.40968.56
Accounts Payable (%)
Capital Expenditure -313-274-249-342-272-301.20-298.48-295.78-293.10-290.46
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 24.67
Beta 1.175
Diluted Shares Outstanding 203
Cost of Debt
Tax Rate 34.00
After-tax Cost of Debt 2.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.021
Total Debt 1,737
Total Equity 5,008.01
Total Capital 6,745.01
Debt Weighting 25.75
Equity Weighting 74.25
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 9,3796,7976,0188,4538,0237,950.487,878.627,807.417,736.847,666.90
EBITDA 1,4625025601,0101,141929.40921912.67904.42896.25
EBIT 1,119232277714860621.93616.31610.74605.22599.75
Tax Rate 64.23%-9.72%13.65%20.41%34.00%24.51%24.51%24.51%24.51%24.51%
EBIAT 400.32254.55239.19568.26567.58469.47465.23461.02456.86452.73
Depreciation 343270283296281307.46304.68301.93299.20296.50
Accounts Receivable -31943-609685-296.0710.2110.1210.039.94
Inventories -22066-353206-58.269.529.439.359.26
Accounts Payable --13954332-24743.39-9.08-9-8.92-8.83
Capital Expenditure -313-274-249-342-272-301.20-298.48-295.78-293.10-290.46
UFCF 430.32650.55436.19-107.741,220.58164.79482.09477.74473.42469.14
WACC
PV UFCF 152.51412.93378.72347.33318.55
SUM PV UFCF 1,610.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.05
Free cash flow (t + 1) 478.52
Terminal Value 7,909.43
Present Value of Terminal Value 5,370.58

Intrinsic Value

Enterprise Value 6,980.63
Net Debt 1,083
Equity Value 5,897.63
Shares Outstanding 203
Equity Value Per Share 29.05