Discounted Cash Flow (DCF) Analysis Unlevered

NextEra Energy, Inc. (NEE)

$74.67

-0.93 (-1.23%)

All numbers are in Millions, Currency in USD

Stock DCF: 26.67 | 74.67 | overvalue

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	17,195	16,727	19,204	17,997	17,069	17,096.53	17,124.10	17,151.72	17,179.38	17,207.09
Revenue (%)
EBITDA	8,912	13,859	10,944	9,228	9,405	10,191.11	10,207.55	10,224.01	10,240.50	10,257.02
EBITDA (%)
EBIT	6,283	9,712	6,466	4,913	5,191	6,359.31	6,369.56	6,379.84	6,390.13	6,400.43
EBIT (%)
Depreciation	2,629	4,147	4,478	4,315	4,214	3,831.81	3,837.99	3,844.18	3,850.38	3,856.59
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	1,714	638	600	1,105	639	916.04	917.51	918.99	920.47	921.96
Total Cash (%)
Account Receivables	2,737	2,969	2,807	2,974	4,108	3,038.94	3,043.84	3,048.75	3,053.67	3,058.59
Account Receivables (%)
Inventories	1,273	1,223	1,328	1,552	1,561	1,347.17	1,349.34	1,351.52	1,353.70	1,355.88
Inventories (%)
Accounts Payable	3,235	2,386	3,631	4,615	6,935	4,043.60	4,050.12	4,056.65	4,063.19	4,069.75
Accounts Payable (%)
Capital Expenditure	-5,445	-6,010	-11,077	-7,759	-7,830	-7,326.28	-7,338.09	-7,349.93	-7,361.78	-7,373.66
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 74.67
Beta	0.488
Diluted Shares Outstanding	1,972.20
Cost of Debt
Tax Rate	-12.54
After-tax Cost of Debt	2.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.837
Total Debt	54,827
Total Equity	147,264.17
Total Capital	202,091.17
Debt Weighting	27.13
Equity Weighting	72.87
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	17,195	16,727	19,204	17,997	17,069	17,096.53	17,124.10	17,151.72	17,179.38	17,207.09
EBITDA	8,912	13,859	10,944	9,228	9,405	10,191.11	10,207.55	10,224.01	10,240.50	10,257.02
EBIT	6,283	9,712	6,466	4,913	5,191	6,359.31	6,369.56	6,379.84	6,390.13	6,400.43
Tax Rate	-15.23%	9.71%	1.75%	-20.97%	-12.54%	-7.46%	-7.46%	-7.46%	-7.46%	-7.46%
EBIAT	7,240.19	8,768.81	6,353.06	5,943.24	5,841.71	6,833.48	6,844.50	6,855.54	6,866.59	6,877.67
Depreciation	2,629	4,147	4,478	4,315	4,214	3,831.81	3,837.99	3,844.18	3,850.38	3,856.59
Accounts Receivable	-	-232	162	-167	-1,134	1,069.06	-4.90	-4.91	-4.92	-4.92
Inventories	-	50	-105	-224	-9	213.83	-2.17	-2.18	-2.18	-2.18
Accounts Payable	-	-849	1,245	984	2,320	-2,891.40	6.52	6.53	6.54	6.55
Capital Expenditure	-5,445	-6,010	-11,077	-7,759	-7,830	-7,326.28	-7,338.09	-7,349.93	-7,361.78	-7,373.66
UFCF	4,424.19	5,874.81	1,056.06	3,092.24	3,402.71	1,730.49	3,343.84	3,349.23	3,354.63	3,360.04
WACC
PV UFCF						1,649.97	3,039.90	2,903.13	2,772.52	2,647.78
SUM PV UFCF										13,013.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.88
Free cash flow (t + 1)	3,427.24
Terminal Value	119,001.51
Present Value of Terminal Value	93,775.44

Intrinsic Value

Enterprise Value	106,788.74
Net Debt	54,188
Equity Value	52,600.74
Shares Outstanding	1,972.20
Equity Value Per Share	26.67