Discounted Cash Flow (DCF) Analysis Unlevered

MasTec, Inc. (MTZ)

$76.6

-1.53 (-1.96%)

All numbers are in Millions, Currency in USD

Stock DCF: 103.31 | 76.6 | 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	6,909.42	7,183.19	6,320.98	7,951.78	9,778.04	10,773.58	11,870.48	13,079.06	14,410.70	15,877.91
Revenue (%)
EBITDA	708.47	826.77	788.11	906.31	662.46	1,129.16	1,244.13	1,370.80	1,510.36	1,664.14
EBITDA (%)
EBIT	495.54	591.28	490.36	483.49	155.31	664.29	731.93	806.45	888.56	979.02
EBIT (%)
Depreciation	212.93	235.48	297.75	422.83	507.15	464.87	512.20	564.35	621.81	685.12
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	27.42	71.43	423.12	360.74	370.59	353.63	389.63	429.30	473.01	521.17
Total Cash (%)
Account Receivables	1,924	1,874.87	1,754.24	2,247.23	3,129.59	3,058.98	3,370.42	3,713.58	4,091.67	4,508.26
Account Receivables (%)
Inventories	113.71	100.07	89.65	92.59	117.97	147.12	162.10	178.61	196.79	216.83
Inventories (%)
Accounts Payable	669.71	535.03	571.27	663.06	1,109.87	988.32	1,088.95	1,199.82	1,321.98	1,456.57
Accounts Payable (%)
Capital Expenditure	-180.42	-126.47	-213.75	-170.07	-263.35	-271.18	-298.79	-329.21	-362.73	-399.66
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 76.6
Beta	1.430
Diluted Shares Outstanding	76.19
Cost of Debt
Tax Rate	22.54
After-tax Cost of Debt	2.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.190
Total Debt	3,514.68
Total Equity	5,835.77
Total Capital	9,350.45
Debt Weighting	37.59
Equity Weighting	62.41
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	6,909.42	7,183.19	6,320.98	7,951.78	9,778.04	10,773.58	11,870.48	13,079.06	14,410.70	15,877.91
EBITDA	708.47	826.77	788.11	906.31	662.46	1,129.16	1,244.13	1,370.80	1,510.36	1,664.14
EBIT	495.54	591.28	490.36	483.49	155.31	664.29	731.93	806.45	888.56	979.02
Tax Rate	28.92%	23.21%	24.07%	23.54%	22.54%	24.46%	24.46%	24.46%	24.46%	24.46%
EBIAT	352.23	454.03	372.36	369.67	120.31	501.84	552.93	609.23	671.25	739.60
Depreciation	212.93	235.48	297.75	422.83	507.15	464.87	512.20	564.35	621.81	685.12
Accounts Receivable	-	49.13	120.63	-492.98	-882.36	70.61	-311.45	-343.16	-378.09	-416.59
Inventories	-	13.64	10.42	-2.95	-25.37	-29.15	-14.98	-16.50	-18.18	-20.04
Accounts Payable	-	-134.68	36.24	91.79	446.80	-121.54	100.63	110.87	122.16	134.60
Capital Expenditure	-180.42	-126.47	-213.75	-170.07	-263.35	-271.18	-298.79	-329.21	-362.73	-399.66
UFCF	384.74	491.13	623.65	218.29	-96.83	615.44	540.54	595.57	656.21	723.02
WACC
PV UFCF						570.33	464.20	473.97	483.95	494.13
SUM PV UFCF										2,486.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.91
Free cash flow (t + 1)	737.48
Terminal Value	12,478.55
Present Value of Terminal Value	8,528.17

Intrinsic Value

Enterprise Value	11,014.73
Net Debt	3,144.08
Equity Value	7,870.65
Shares Outstanding	76.19
Equity Value Per Share	103.31