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	10,132	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