Discounted Cash Flow (DCF) Analysis Unlevered

The Southern Company JR 2017B NT 77 (SOJC)

$24.61

+0.13 (+0.55%)
All numbers are in Millions, Currency in USD
Stock DCF: Infinity | 24.61 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 21,41920,37523,11329,27925,25326,609.7828,039.4629,545.9531,133.3832,806.10
Revenue (%)
EBITDA 8,7878,8277,6119,87811,50910,462.3711,024.4911,616.8112,240.9512,898.63
EBITDA (%)
EBIT 5,4564,9223,6385,8146,5235,910.446,227.996,562.616,915.207,286.74
EBIT (%)
Depreciation 3,3313,9053,9734,0644,9864,551.934,796.505,054.205,325.755,611.89
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 1,9751,0651,7981,9177481,688.991,779.741,875.361,976.122,082.29
Total Cash (%)
Account Receivables 3,4093,3352,9623,7163,9633,910.794,120.914,342.314,575.614,821.45
Account Receivables (%)
Inventories 2,3882,4882,3552,6773,3522,978.483,138.503,307.133,484.813,672.04
Inventories (%)
Accounts Payable 2,5572,8062,1693,5252,8983,119.163,286.753,463.343,649.413,845.49
Accounts Payable (%)
Capital Expenditure -7,555-7,441-7,240-7,923-9,095-8,844.71-9,319.92-9,820.65-10,348.29-10,904.28
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 24.61
Beta 0.000
Diluted Shares Outstanding -
Cost of Debt
Tax Rate 8.49
After-tax Cost of Debt 3.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.251
Total Debt 63,490
Total Equity -
Total Capital 63,490
Debt Weighting 100.00
Equity Weighting 0.00
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 21,41920,37523,11329,27925,25326,609.7828,039.4629,545.9531,133.3832,806.10
EBITDA 8,7878,8277,6119,87811,50910,462.3711,024.4911,616.8112,240.9512,898.63
EBIT 5,4564,9223,6385,8146,5235,910.446,227.996,562.616,915.207,286.74
Tax Rate 27.33%10.35%6.52%16.29%8.49%13.80%13.80%13.80%13.80%13.80%
EBIAT 3,964.824,412.343,400.744,866.805,969.035,094.905,368.635,657.085,961.026,281.29
Depreciation 3,3313,9053,9734,0644,9864,551.934,796.505,054.205,325.755,611.89
Accounts Receivable -74373-754-24752.21-210.12-221.41-233.30-245.84
Inventories --100133-322-675373.52-160.03-168.62-177.68-187.23
Accounts Payable -249-6371,356-627221.16167.58176.59186.08196.07
Capital Expenditure -7,555-7,441-7,240-7,923-9,095-8,844.71-9,319.92-9,820.65-10,348.29-10,904.28
UFCF -259.181,099.342.741,287.80311.031,449.01642.65677.18713.56751.90
WACC
PV UFCF 1,394.75595.43603.92612.54621.29
SUM PV UFCF 3,827.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.89
Free cash flow (t + 1) 778.22
Terminal Value 199,542.72
Present Value of Terminal Value 164,879.69

Intrinsic Value

Enterprise Value 168,707.62
Net Debt 62,742
Equity Value 105,965.62
Shares Outstanding -
Equity Value Per Share Infinity