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	7,785	7,769	7,607	5,783	7,902	8,106.92	8,317.16	8,532.85	8,754.13	8,981.16
Revenue (%)
EBITDA	4,420	4,429	4,331	1,062	2,703	3,620.38	3,714.27	3,810.59	3,909.41	4,010.80
EBITDA (%)
EBIT	3,248	3,149	2,972	-59	1,470	2,252.20	2,310.61	2,370.53	2,432	2,495.07
EBIT (%)
Depreciation	1,172	1,280	1,359	1,121	1,233	1,368.18	1,403.66	1,440.06	1,477.41	1,515.72
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	621	815	708	3,571	356	1,524.58	1,564.12	1,604.68	1,646.30	1,688.99
Total Cash (%)
Account Receivables	1,266	1,296	1,379	948	1,598	1,421.75	1,458.62	1,496.45	1,535.25	1,575.07
Account Receivables (%)
Inventories	303	332	361	322	443	390.52	400.64	411.03	421.69	432.63
Inventories (%)
Accounts Payable	989	956	965	679	1,201	1,047.98	1,075.16	1,103.04	1,131.65	1,160.99
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	7,785	7,769	7,607	5,783	7,902	8,106.92	8,317.16	8,532.85	8,754.13	8,981.16
EBITDA	4,420	4,429	4,331	1,062	2,703	3,620.38	3,714.27	3,810.59	3,909.41	4,010.80
EBIT	3,248	3,149	2,972	-59	1,470	2,252.20	2,310.61	2,370.53	2,432	2,495.07
Tax Rate	20.04%	18.98%	25.47%	384.07%	17.38%	93.19%	93.19%	93.19%	93.19%	93.19%
EBIAT	2,596.98	2,551.35	2,215.05	167.60	1,214.56	153.43	157.41	161.49	165.68	169.97
Depreciation	1,172	1,280	1,359	1,121	1,233	1,368.18	1,403.66	1,440.06	1,477.41	1,515.72
Accounts Receivable	-	-30	-83	431	-650	176.25	-36.87	-37.83	-38.81	-39.81
Inventories	-	-29	-29	39	-121	52.48	-10.13	-10.39	-10.66	-10.94
Accounts Payable	-	-33	9	-286	522	-153.02	27.18	27.88	28.61	29.35
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	530.98	656.35	222.05	-500.40	43.56	-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