Discounted Cash Flow (DCF) Analysis Unlevered

PPL Corporation (PPL)

$26.44

-0.20 (-0.75%)
All numbers are in Millions, Currency in USD
Stock DCF: -30.19 | 26.44 | 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 7,7697,6075,7837,9028,3128,639.648,980.209,334.199,702.1310,084.57
Revenue (%)
EBITDA 4,4294,3312,5602,6611,6303,654.503,798.553,948.294,103.924,265.69
EBITDA (%)
EBIT 3,1492,9721,4391,428189.352,157.062,242.082,330.462,422.332,517.81
EBIT (%)
Depreciation 1,2801,3591,1211,2331,440.651,497.441,556.471,617.821,681.591,747.88
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 8157083,5713561,788.181,858.661,931.932,008.082,087.242,169.51
Total Cash (%)
Account Receivables 1,2961,3799481,5981,484.221,542.721,603.541,666.741,732.441,800.73
Account Receivables (%)
Inventories 332361322443419.62436.16453.35471.22489.79509.10
Inventories (%)
Accounts Payable 9569656791,2011,1041,126.831,171.251,217.421,265.411,315.29
Accounts Payable (%)
Capital Expenditure -3,083-3,249-1,973-2,155-2,987.81-3,105.58-3,228-3,355.24-3,487.50-3,624.97
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 26.44
Beta 0.832
Diluted Shares Outstanding 738.17
Cost of Debt
Tax Rate 19.91
After-tax Cost of Debt 3.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.178
Total Debt 15,604
Total Equity 19,517.11
Total Capital 35,121.11
Debt Weighting 44.43
Equity Weighting 55.57
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 7,7697,6075,7837,9028,3128,639.648,980.209,334.199,702.1310,084.57
EBITDA 4,4294,3312,5602,6611,6303,654.503,798.553,948.294,103.924,265.69
EBIT 3,1492,9721,4391,428189.352,157.062,242.082,330.462,422.332,517.81
Tax Rate 18.98%25.47%96.55%17.38%19.91%35.66%35.66%35.66%35.66%35.66%
EBIAT 2,551.352,215.0549.721,179.86151.641,387.921,442.631,499.491,558.601,620.04
Depreciation 1,2801,3591,1211,2331,440.651,497.441,556.471,617.821,681.591,747.88
Accounts Receivable --83431-650113.78-58.51-60.81-63.21-65.70-68.29
Inventories --2939-12123.38-16.54-17.19-17.87-18.57-19.31
Accounts Payable -9-286522-9722.8344.4246.1747.9949.88
Capital Expenditure -3,083-3,249-1,973-2,155-2,987.81-3,105.58-3,228-3,355.24-3,487.50-3,624.97
UFCF 748.35222.05-618.288.86-1,355.35-272.43-262.49-272.83-283.59-294.77
WACC
PV UFCF -256.87-233.35-228.69-224.12-219.64
SUM PV UFCF -1,162.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.06
Free cash flow (t + 1) -300.66
Terminal Value -7,405.46
Present Value of Terminal Value -5,518.15

Intrinsic Value

Enterprise Value -6,680.82
Net Debt 15,604
Equity Value -22,284.82
Shares Outstanding 738.17
Equity Value Per Share -30.19