Discounted Cash Flow (DCF) Analysis Unlevered

PPL Corporation (PPL)

$26.6

-0.67 (-2.46%)
All numbers are in Millions, Currency in USD
Stock DCF: -78.42 | 26.6 | overvalue

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 7,7857,7697,6075,7837,9028,106.928,317.168,532.858,754.138,981.16
Revenue (%)
EBITDA 4,4204,4294,3311,0622,7033,620.383,714.273,810.593,909.414,010.80
EBITDA (%)
EBIT 3,2483,1492,972-591,4702,252.202,310.612,370.532,4322,495.07
EBIT (%)
Depreciation 1,1721,2801,3591,1211,2331,368.181,403.661,440.061,477.411,515.72
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 6218157083,5713561,524.581,564.121,604.681,646.301,688.99
Total Cash (%)
Account Receivables 1,2661,2961,3799481,5981,421.751,458.621,496.451,535.251,575.07
Account Receivables (%)
Inventories 303332361322443390.52400.64411.03421.69432.63
Inventories (%)
Accounts Payable 9899569656791,2011,047.981,075.161,103.041,131.651,160.99
Accounts Payable (%)
Capital Expenditure -3,238-3,083-3,249-1,973-2,155-3,005.65-3,083.60-3,163.57-3,245.61-3,329.77
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 26.6
Beta 0.790
Diluted Shares Outstanding 736.90
Cost of Debt
Tax Rate 17.38
After-tax Cost of Debt 2.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.315
Total Debt 14,228
Total Equity 19,601.59
Total Capital 33,829.59
Debt Weighting 42.06
Equity Weighting 57.94
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 7,7857,7697,6075,7837,9028,106.928,317.168,532.858,754.138,981.16
EBITDA 4,4204,4294,3311,0622,7033,620.383,714.273,810.593,909.414,010.80
EBIT 3,2483,1492,972-591,4702,252.202,310.612,370.532,4322,495.07
Tax Rate 20.04%18.98%25.47%384.07%17.38%93.19%93.19%93.19%93.19%93.19%
EBIAT 2,596.982,551.352,215.05167.601,214.56153.43157.41161.49165.68169.97
Depreciation 1,1721,2801,3591,1211,2331,368.181,403.661,440.061,477.411,515.72
Accounts Receivable --30-83431-650176.25-36.87-37.83-38.81-39.81
Inventories --29-2939-12152.48-10.13-10.39-10.66-10.94
Accounts Payable --339-286522-153.0227.1827.8828.6129.35
Capital Expenditure -3,238-3,083-3,249-1,973-2,155-3,005.65-3,083.60-3,163.57-3,245.61-3,329.77
UFCF 530.98656.35222.05-500.4043.56-1,408.33-1,542.35-1,582.35-1,623.38-1,665.48
WACC
PV UFCF -1,335.04-1,385.99-1,347.93-1,310.92-1,274.92
SUM PV UFCF -6,654.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.49
Free cash flow (t + 1) -1,698.79
Terminal Value -48,675.98
Present Value of Terminal Value -37,261.32

Intrinsic Value

Enterprise Value -43,916.12
Net Debt 13,872
Equity Value -57,788.12
Shares Outstanding 736.90
Equity Value Per Share -78.42