Discounted Cash Flow (DCF) Analysis Unlevered

KBR, Inc. (KBR)

$44.71

-0.90 (-1.97%)
All numbers are in Millions, Currency in USD
Stock DCF: 91.11 | 44.71 | undervalue

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 4,1714,9135,6395,7677,3398,478.299,794.4411,314.9113,071.4015,100.58
Revenue (%)
EBITDA 310498464152364566.22654.12755.67872.971,008.49
EBITDA (%)
EBIT 26243536037218426.15492.30568.72657.01759
EBIT (%)
Depreciation 4863104115146140.08161.82186.94215.96249.49
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 439739712436370861.31995.021,149.481,327.921,534.07
Total Cash (%)
Account Receivables 9041,1411,1901,0991,6561,824.902,108.192,435.462,813.533,250.30
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 3805796135961,039953.951,102.041,273.111,470.751,699.06
Accounts Payable (%)
Capital Expenditure -8-17-20-20-37-29.56-34.15-39.45-45.58-52.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 44.71
Beta 1.260
Diluted Shares Outstanding 145
Cost of Debt
Tax Rate 86.57
After-tax Cost of Debt 0.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.645
Total Debt 2,099
Total Equity 6,482.95
Total Capital 8,581.95
Debt Weighting 24.46
Equity Weighting 75.54
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 4,1714,9135,6395,7677,3398,478.299,794.4411,314.9113,071.4015,100.58
EBITDA 310498464152364566.22654.12755.67872.971,008.49
EBIT 26243536037218426.15492.30568.72657.01759
Tax Rate -74.30%29.40%24.63%-188.00%86.57%-24.34%-24.34%-24.34%-24.34%-24.34%
EBIAT 456.66307.12271.34106.5629.28529.88612.13707.16816.94943.76
Depreciation 4863104115146140.08161.82186.94215.96249.49
Accounts Receivable --237-4991-557-168.90-283.29-327.27-378.07-436.77
Inventories ----------
Accounts Payable -19934-17443-85.05148.09171.08197.64228.32
Capital Expenditure -8-17-20-20-37-29.56-34.15-39.45-45.58-52.65
UFCF 496.66315.12340.34275.5624.28386.44604.60698.45806.88932.14
WACC
PV UFCF 359.71523.86563.33605.77651.41
SUM PV UFCF 2,704.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.43
Free cash flow (t + 1) 950.78
Terminal Value 17,509.80
Present Value of Terminal Value 12,236.39

Intrinsic Value

Enterprise Value 14,940.47
Net Debt 1,729
Equity Value 13,211.47
Shares Outstanding 145
Equity Value Per Share 91.11