Discounted Cash Flow (DCF) Analysis Unlevered

MasTec, Inc. (MTZ)

$66.07

-4.71 (-6.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 110.48 | 66.07 | 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 6,606.986,909.427,183.196,320.977,951.788,395.828,864.659,359.679,882.3310,434.17
Revenue (%)
EBITDA 619.22661.23821.69782.69904.42909.06959.821,013.421,070.011,129.76
EBITDA (%)
EBIT 431.17448.30586.20484.94627.76616.95651.40687.78726.18766.73
EBIT (%)
Depreciation 188.05212.93235.48297.75276.66292.11308.42325.64343.82363.02
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 40.3327.4271.43423.120146.01154.16162.77171.86181.46
Total Cash (%)
Account Receivables 1,5981,9241,874.871,754.242,104.962,222.502,346.612,477.652,6162,762.08
Account Receivables (%)
Inventories 76.99113.71100.0789.65111.77118.01124.60131.56138.90146.66
Inventories (%)
Accounts Payable 377.95669.71535.03571.27634.14669.55706.94746.42788.10832.11
Accounts Payable (%)
Capital Expenditure -123.41-180.42-126.47-213.75-191.27-201.95-213.22-225.13-237.70-250.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 66.07
Beta 1.249
Diluted Shares Outstanding 73.94
Cost of Debt
Tax Rate 23.54
After-tax Cost of Debt 1.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.665
Total Debt 2,052.61
Total Equity 4,885.28
Total Capital 6,937.89
Debt Weighting 29.59
Equity Weighting 70.41
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 6,606.986,909.427,183.196,320.977,951.788,395.828,864.659,359.679,882.3310,434.17
EBITDA 619.22661.23821.69782.69904.42909.06959.821,013.421,070.011,129.76
EBIT 431.17448.30586.20484.94627.76616.95651.40687.78726.18766.73
Tax Rate 6.62%28.92%23.21%24.07%23.54%21.27%21.27%21.27%21.27%21.27%
EBIAT 402.63318.66450.13368.24479.98485.71512.84541.47571.71603.64
Depreciation 188.05212.93235.48297.75276.66292.11308.42325.64343.82363.02
Accounts Receivable --32649.13120.63-350.71-117.54-124.11-131.04-138.36-146.08
Inventories --36.7213.6410.42-22.12-6.24-6.59-6.96-7.35-7.76
Accounts Payable -291.76-134.6836.2462.8735.4137.3939.4841.6844.01
Capital Expenditure -123.41-180.42-126.47-213.75-191.27-201.95-213.22-225.13-237.70-250.98
UFCF 467.26280.21487.22619.53255.40487.50514.72543.46573.81605.85
WACC
PV UFCF 453.95446.32438.81431.43424.18
SUM PV UFCF 2,194.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.39
Free cash flow (t + 1) 617.97
Terminal Value 11,465.14
Present Value of Terminal Value 8,027.13

Intrinsic Value

Enterprise Value 10,221.82
Net Debt 2,052.61
Equity Value 8,169.21
Shares Outstanding 73.94
Equity Value Per Share 110.48