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
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 | 10,132 | 10,721 | 11,691 | 18,520 | 20,762 | 25,193.61 | 30,571.13 | 37,096.48 | 45,014.65 | 54,622.94 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 5,725 | 5,197 | 4,904 | 8,877 | 12,181 | 12,774.55 | 15,501.25 | 18,809.96 | 22,824.91 | 27,696.84 |
EBITDA (%) | ||||||||||
EBIT | 5,419 | 4,848 | 4,300 | 7,713 | 10,933 | 11,578.46 | 14,049.86 | 17,048.78 | 20,687.81 | 25,103.58 |
EBIT (%) | ||||||||||
Depreciation | 306 | 349 | 604 | 1,164 | 1,248 | 1,196.09 | 1,451.39 | 1,761.18 | 2,137.10 | 2,593.27 |
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 | 94,516 | 90,722 | 377,748 | 453,029 | 188,066 | 421,344.70 | 511,279.89 | 620,411.58 | 752,837.21 | 913,528.83 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 23,200 | 23,146 | 67,947 | 95,292 | 71,241 | 94,915.89 | 115,175.50 | 139,759.48 | 169,590.86 | 205,789.70 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | - | - | - | - | - | - | - |
Inventories (%) | ||||||||||
Accounts Payable | 34,557 | 39,200 | 104,201 | 125,671 | 97,438 | 138,357.06 | 167,889.11 | 203,724.70 | 247,209.34 | 299,975.69 |
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 | 10,132 | 10,721 | 11,691 | 18,520 | 20,762 | 25,193.61 | 30,571.13 | 37,096.48 | 45,014.65 | 54,622.94 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 5,725 | 5,197 | 4,904 | 8,877 | 12,181 | 12,774.55 | 15,501.25 | 18,809.96 | 22,824.91 | 27,696.84 |
EBIT | 5,419 | 4,848 | 4,300 | 7,713 | 10,933 | 11,578.46 | 14,049.86 | 17,048.78 | 20,687.81 | 25,103.58 |
Tax Rate | 23.13% | 23.60% | 23.28% | 24.09% | 23.49% | 23.52% | 23.52% | 23.52% | 23.52% | 23.52% |
EBIAT | 4,165.81 | 3,704 | 3,299 | 5,855 | 8,365.12 | 8,855.70 | 10,745.93 | 13,039.62 | 15,822.91 | 19,200.28 |
Depreciation | 306 | 349 | 604 | 1,164 | 1,248 | 1,196.09 | 1,451.39 | 1,761.18 | 2,137.10 | 2,593.27 |
Accounts Receivable | - | 54 | -44,801 | -27,345 | 24,051 | -23,674.89 | -20,259.61 | -24,583.98 | -29,831.39 | -36,198.84 |
Inventories | - | - | - | - | - | - | - | - | - | - |
Accounts Payable | - | 4,643 | 65,001 | 21,470 | -28,233 | 40,919.06 | 29,532.04 | 35,835.60 | 43,484.64 | 52,766.35 |
Capital Expenditure | -570 | -708 | -631 | -916 | -971 | -1,373.04 | -1,666.11 | -2,021.74 | -2,453.27 | -2,976.92 |
UFCF | 3,901.81 | 8,042 | 23,472 | 228 | 4,460.12 | 25,922.92 | 19,803.64 | 24,030.69 | 29,159.99 | 35,384.13 |
WACC | ||||||||||
PV UFCF | 24,145.79 | 17,181.46 | 19,419.53 | 21,949.13 | 24,808.24 | |||||
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 |