Discounted Cash Flow (DCF) Analysis Unlevered
The Charles Schwab Corporation (SCHW)
$63.92
+0.74 (+1.17%)
All numbers are in Millions, Currency in USD
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 | 8,618 | 10,132 | 10,721 | 11,691 | 18,520 | 22,725.95 | 27,887.09 | 34,220.33 | 41,991.88 | 51,528.36 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 4,261 | 5,725 | 6,261 | 5,322 | 9,353 | 11,834.35 | 14,521.97 | 17,819.96 | 21,866.93 | 26,832.98 |
EBITDA (%) | ||||||||||
EBIT | 3,992 | 5,419 | 5,912 | 4,718 | 8,189 | 10,886.76 | 13,359.18 | 16,393.09 | 20,116.01 | 24,684.42 |
EBIT (%) | ||||||||||
Depreciation | 269 | 306 | 349 | 604 | 1,164 | 947.59 | 1,162.79 | 1,426.87 | 1,750.92 | 2,148.55 |
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 | 64,212 | 94,516 | 90,767 | 377,748 | 116,924 | 290,301.57 | 356,229.98 | 437,130.93 | 536,404.74 | 658,223.96 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 22,099 | 23,200 | 23,146 | 67,947 | 90,565 | 80,518.16 | 98,804.08 | 121,242.80 | 148,777.43 | 182,565.25 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | - | - | - | - | - | - | - |
Inventories (%) | ||||||||||
Accounts Payable | 32,530 | 34,557 | 39,220 | 104,201 | 91,472.60 | 112,246.32 | 137,737.82 | 169,018.51 | 207,403.15 | 254,505.06 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -400 | -570 | -708 | -631 | -916 | -1,236.94 | -1,517.86 | -1,862.57 | -2,285.56 | -2,804.62 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 63.92 |
---|---|
Beta | 1.089 |
Diluted Shares Outstanding | 1,429 |
Cost of Debt | |
Tax Rate | 24.09 |
After-tax Cost of Debt | 1.52% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.031 |
Total Debt | 23,769 |
Total Equity | 91,341.68 |
Total Capital | 115,110.68 |
Debt Weighting | 20.65 |
Equity Weighting | 79.35 |
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 | 8,618 | 10,132 | 10,721 | 11,691 | 18,520 | 22,725.95 | 27,887.09 | 34,220.33 | 41,991.88 | 51,528.36 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 4,261 | 5,725 | 6,261 | 5,322 | 9,353 | 11,834.35 | 14,521.97 | 17,819.96 | 21,866.93 | 26,832.98 |
EBIT | 3,992 | 5,419 | 5,912 | 4,718 | 8,189 | 10,886.76 | 13,359.18 | 16,393.09 | 20,116.01 | 24,684.42 |
Tax Rate | 35.51% | 23.13% | 23.60% | 23.28% | 24.09% | 25.92% | 25.92% | 25.92% | 25.92% | 25.92% |
EBIAT | 2,574.57 | 4,165.81 | 4,516.92 | 3,619.69 | 6,216.34 | 8,064.95 | 9,896.52 | 12,144.06 | 14,902.01 | 18,286.30 |
Depreciation | 269 | 306 | 349 | 604 | 1,164 | 947.59 | 1,162.79 | 1,426.87 | 1,750.92 | 2,148.55 |
Accounts Receivable | - | -1,101 | 54 | -44,801 | -22,618 | 10,046.84 | -18,285.93 | -22,438.72 | -27,534.62 | -33,787.82 |
Inventories | - | - | - | - | - | - | - | - | - | - |
Accounts Payable | - | 2,027 | 4,663 | 64,981 | -12,728.40 | 20,773.72 | 25,491.49 | 31,280.69 | 38,384.64 | 47,101.91 |
Capital Expenditure | -400 | -570 | -708 | -631 | -916 | -1,236.94 | -1,517.86 | -1,862.57 | -2,285.56 | -2,804.62 |
UFCF | 2,443.57 | 4,827.81 | 8,874.92 | 23,772.69 | -28,882.06 | 38,596.16 | 16,747.03 | 20,550.33 | 25,217.37 | 30,944.32 |
WACC | ||||||||||
PV UFCF | 36,175.99 | 14,712.63 | 16,921.84 | 19,462.79 | 22,385.27 | |||||
SUM PV UFCF | 109,658.52 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.69 |
Free cash flow (t + 1) | 31,563.21 |
Terminal Value | 672,989.48 |
Present Value of Terminal Value | 486,843.86 |
Intrinsic Value
Enterprise Value | 596,502.38 |
---|---|
Net Debt | -39,206 |
Equity Value | 635,708.38 |
Shares Outstanding | 1,429 |
Equity Value Per Share | 444.86 |