Discounted Cash Flow (DCF) Analysis Unlevered

PPG Industries, Inc. (PPG)

$112.32

+0.40 (+0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 115.08 | 112.32 | 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 14,75015,37415,14613,83416,80217,454.7418,132.8318,837.2719,569.0820,329.31
Revenue (%)
EBITDA 2,7722,3092,2781,9972,4952,727.732,833.702,943.783,058.153,176.95
EBITDA (%)
EBIT 2,3121,8121,7671,4881,9342,143.232,226.492,312.982,402.842,496.19
EBIT (%)
Depreciation 460497511509561584.50607.21630.80655.31680.76
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 1,4919631,2731,9221,0721,572.691,633.791,697.261,763.201,831.70
Total Cash (%)
Account Receivables 2,9032,8452,7562,7263,1523,311.083,439.713,573.343,712.163,856.37
Account Receivables (%)
Inventories 1,7301,7831,7101,7352,1712,097.332,178.812,263.452,351.382,442.73
Inventories (%)
Accounts Payable 2,5812,4602,3782,5793,1023,012.843,129.893,251.483,377.803,509.02
Accounts Payable (%)
Capital Expenditure -360-411-413-304-371-427.51-444.12-461.38-479.30-497.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 112.32
Beta 1.159
Diluted Shares Outstanding 239.20
Cost of Debt
Tax Rate 20.72
After-tax Cost of Debt 1.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.166
Total Debt 7,466
Total Equity 26,866.94
Total Capital 34,332.94
Debt Weighting 21.75
Equity Weighting 78.25
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 14,75015,37415,14613,83416,80217,454.7418,132.8318,837.2719,569.0820,329.31
EBITDA 2,7722,3092,2781,9972,4952,727.732,833.702,943.783,058.153,176.95
EBIT 2,3121,8121,7671,4881,9342,143.232,226.492,312.982,402.842,496.19
Tax Rate 20.77%20.79%25.17%22.25%20.72%21.94%21.94%21.94%21.94%21.94%
EBIAT 1,831.871,435.261,322.321,156.971,533.351,673.061,738.051,805.581,875.721,948.59
Depreciation 460497511509561584.50607.21630.80655.31680.76
Accounts Receivable -588930-426-159.08-128.63-133.63-138.82-144.21
Inventories --5373-25-43673.67-81.48-84.64-87.93-91.35
Accounts Payable --121-82201523-89.16117.05121.59126.32131.22
Capital Expenditure -360-411-413-304-371-427.51-444.12-461.38-479.30-497.92
UFCF 1,931.871,405.261,500.321,567.971,384.351,655.481,808.081,878.321,951.292,027.10
WACC
PV UFCF 1,540.701,566.051,514.081,463.851,415.28
SUM PV UFCF 7,499.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.45
Free cash flow (t + 1) 2,067.64
Terminal Value 37,938.30
Present Value of Terminal Value 26,487.79

Intrinsic Value

Enterprise Value 33,987.75
Net Debt 6,461
Equity Value 27,526.75
Shares Outstanding 239.20
Equity Value Per Share 115.08