Discounted Cash Flow (DCF) Analysis Unlevered

The Charles Schwab Corporation (SCHW)

$62.405

-0.76 (-1.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 307.24 | 62.405 | undervalue

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 10,13210,72111,69118,52020,76225,193.6130,571.1337,096.4845,014.6554,622.94
Revenue (%)
EBITDA 5,7255,1974,9048,87712,18112,774.5515,501.2518,809.9622,824.9127,696.84
EBITDA (%)
EBIT 5,4194,8484,3007,71310,93311,578.4614,049.8617,048.7820,687.8125,103.58
EBIT (%)
Depreciation 3063496041,1641,2481,196.091,451.391,761.182,137.102,593.27
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 94,51690,722377,748453,029188,066421,344.70511,279.89620,411.58752,837.21913,528.83
Total Cash (%)
Account Receivables 23,20023,14667,94795,29271,24194,915.89115,175.50139,759.48169,590.86205,789.70
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 34,55739,200104,201125,67197,438138,357.06167,889.11203,724.70247,209.34299,975.69
Accounts Payable (%)
Capital Expenditure -570-708-631-916-971-1,373.04-1,666.11-2,021.74-2,453.27-2,976.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 62.405
Beta 0.940
Diluted Shares Outstanding 1,894
Cost of Debt
Tax Rate 23.49
After-tax Cost of Debt 3.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.677
Total Debt 37,878
Total Equity 118,195.07
Total Capital 156,073.07
Debt Weighting 24.27
Equity Weighting 75.73
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 10,13210,72111,69118,52020,76225,193.6130,571.1337,096.4845,014.6554,622.94
EBITDA 5,7255,1974,9048,87712,18112,774.5515,501.2518,809.9622,824.9127,696.84
EBIT 5,4194,8484,3007,71310,93311,578.4614,049.8617,048.7820,687.8125,103.58
Tax Rate 23.13%23.60%23.28%24.09%23.49%23.52%23.52%23.52%23.52%23.52%
EBIAT 4,165.813,7043,2995,8558,365.128,855.7010,745.9313,039.6215,822.9119,200.28
Depreciation 3063496041,1641,2481,196.091,451.391,761.182,137.102,593.27
Accounts Receivable -54-44,801-27,34524,051-23,674.89-20,259.61-24,583.98-29,831.39-36,198.84
Inventories ----------
Accounts Payable -4,64365,00121,470-28,23340,919.0629,532.0435,835.6043,484.6452,766.35
Capital Expenditure -570-708-631-916-971-1,373.04-1,666.11-2,021.74-2,453.27-2,976.92
UFCF 3,901.818,04223,4722284,460.1225,922.9219,803.6424,030.6929,159.9935,384.13
WACC
PV UFCF 24,145.7917,181.4619,419.5321,949.1324,808.24
SUM PV UFCF 107,504.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.36
Free cash flow (t + 1) 36,091.81
Terminal Value 673,354.72
Present Value of Terminal Value 472,097.17

Intrinsic Value

Enterprise Value 579,601.32
Net Debt -2,317
Equity Value 581,918.32
Shares Outstanding 1,894
Equity Value Per Share 307.24