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	6,606.98	6,909.42	7,183.19	6,320.97	7,951.78	8,395.82	8,864.65	9,359.67	9,882.33	10,434.17
Revenue (%)
EBITDA	619.22	661.23	821.69	782.69	904.42	909.06	959.82	1,013.42	1,070.01	1,129.76
EBITDA (%)
EBIT	431.17	448.30	586.20	484.94	627.76	616.95	651.40	687.78	726.18	766.73
EBIT (%)
Depreciation	188.05	212.93	235.48	297.75	276.66	292.11	308.42	325.64	343.82	363.02
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	40.33	27.42	71.43	423.12	0	146.01	154.16	162.77	171.86	181.46
Total Cash (%)
Account Receivables	1,598	1,924	1,874.87	1,754.24	2,104.96	2,222.50	2,346.61	2,477.65	2,616	2,762.08
Account Receivables (%)
Inventories	76.99	113.71	100.07	89.65	111.77	118.01	124.60	131.56	138.90	146.66
Inventories (%)
Accounts Payable	377.95	669.71	535.03	571.27	634.14	669.55	706.94	746.42	788.10	832.11
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	6,606.98	6,909.42	7,183.19	6,320.97	7,951.78	8,395.82	8,864.65	9,359.67	9,882.33	10,434.17
EBITDA	619.22	661.23	821.69	782.69	904.42	909.06	959.82	1,013.42	1,070.01	1,129.76
EBIT	431.17	448.30	586.20	484.94	627.76	616.95	651.40	687.78	726.18	766.73
Tax Rate	6.62%	28.92%	23.21%	24.07%	23.54%	21.27%	21.27%	21.27%	21.27%	21.27%
EBIAT	402.63	318.66	450.13	368.24	479.98	485.71	512.84	541.47	571.71	603.64
Depreciation	188.05	212.93	235.48	297.75	276.66	292.11	308.42	325.64	343.82	363.02
Accounts Receivable	-	-326	49.13	120.63	-350.71	-117.54	-124.11	-131.04	-138.36	-146.08
Inventories	-	-36.72	13.64	10.42	-22.12	-6.24	-6.59	-6.96	-7.35	-7.76
Accounts Payable	-	291.76	-134.68	36.24	62.87	35.41	37.39	39.48	41.68	44.01
Capital Expenditure	-123.41	-180.42	-126.47	-213.75	-191.27	-201.95	-213.22	-225.13	-237.70	-250.98
UFCF	467.26	280.21	487.22	619.53	255.40	487.50	514.72	543.46	573.81	605.85
WACC
PV UFCF						453.95	446.32	438.81	431.43	424.18
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