Discounted Cash Flow (DCF) Analysis Unlevered

Range Resources Corporation (RRC)

$27.885

-1.13 (-3.88%)
All numbers are in Millions, Currency in USD
Stock DCF: -231.10 | 27.885 | 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 2,397.683,333.842,600.931,780.993,580.444,355.365,297.996,444.647,839.459,536.15
Revenue (%)
EBITDA 277.80-1,566.76-2,022.30-71.38993.93-778.83-947.39-1,152.43-1,401.86-1,705.26
EBITDA (%)
EBIT 277.80-1,566.76-2,022.30-544.66629.37-1,579.26-1,921.06-2,336.84-2,842.60-3,457.82
EBIT (%)
Depreciation ---473.29364.55800.43973.671,184.401,440.741,752.56
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 0.450.550.550.46214.4252.8864.3278.2495.18115.78
Total Cash (%)
Account Receivables 348.83490.72272.90252.64501.27591.86719.96875.781,065.331,295.90
Account Receivables (%)
Inventories 21.3522.9620.5414.0628.2734.3941.8350.8861.9075.29
Inventories (%)
Accounts Payable 343.87227.34155.34132.42178.41344.52419.09509.79620.13754.35
Accounts Payable (%)
Capital Expenditure -1,206.83-1,021.52-747.26-432.43-417.44-1,268.66-1,543.24-1,877.25-2,283.54-2,777.77
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 27.885
Beta 2.154
Diluted Shares Outstanding 241.37
Cost of Debt
Tax Rate -2.42
After-tax Cost of Debt 7.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.993
Total Debt 2,950.65
Total Equity 6,730.69
Total Capital 9,681.33
Debt Weighting 30.48
Equity Weighting 69.52
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 2,397.683,333.842,600.931,780.993,580.444,355.365,297.996,444.647,839.459,536.15
EBITDA 277.80-1,566.76-2,022.30-71.38993.93-778.83-947.39-1,152.43-1,401.86-1,705.26
EBIT 277.80-1,566.76-2,022.30-544.66629.37-1,579.26-1,921.06-2,336.84-2,842.60-3,457.82
Tax Rate -305.68%1.72%22.57%3.47%-2.42%-56.07%-56.07%-56.07%-56.07%-56.07%
EBIAT 1,126.98-1,539.88-1,565.86-525.79644.62-2,464.76-2,998.21-3,647.12-4,436.46-5,396.65
Depreciation ---473.29364.55800.43973.671,184.401,440.741,752.56
Accounts Receivable --141.89217.8220.26-248.63-90.59-128.10-155.82-189.55-230.57
Inventories --1.622.436.47-14.21-6.12-7.44-9.05-11.01-13.40
Accounts Payable --116.53-72-22.9245.99166.1174.5790.70110.34134.22
Capital Expenditure -1,206.83-1,021.52-747.26-432.43-417.44-1,268.66-1,543.24-1,877.25-2,283.54-2,777.77
UFCF -79.85-2,821.43-2,164.88-481.12374.89-2,863.59-3,628.76-4,414.13-5,369.48-6,531.61
WACC
PV UFCF -2,554.95-2,888.69-3,135.17-3,402.67-3,693
SUM PV UFCF -15,674.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.08
Free cash flow (t + 1) -6,662.24
Terminal Value -66,093.63
Present Value of Terminal Value -37,369.65

Intrinsic Value

Enterprise Value -53,044.13
Net Debt 2,736.23
Equity Value -55,780.36
Shares Outstanding 241.37
Equity Value Per Share -231.10