Discounted Cash Flow (DCF) Analysis Unlevered

Southwest Gas Holdings, Inc. (SWX)

$69.75

-1.66 (-2.32%)
All numbers are in Millions, Currency in USD
Stock DCF: -1,354.47 | 69.75 | overvalue

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 2,548.792,880.013,119.923,298.873,680.454,035.874,425.624,8535,321.655,835.57
Revenue (%)
EBITDA 587.94589.84682.42748.24730.67871.39955.541,047.821,1491,259.96
EBITDA (%)
EBIT 336.99340.63379.19416.21359.63481527.45578.39634.24695.49
EBIT (%)
Depreciation 250.95249.21303.24332.03371.04390.39428.09469.43514.76564.47
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 43.6285.3649.5483.35222.70119.79131.36144.04157.95173.21
Total Cash (%)
Account Receivables 433.53505.78584.95522.17808.84735.54806.57884.46969.881,063.54
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 228.32248.99238.92231.30353.36338370.64406.43445.68488.72
Accounts Payable (%)
Capital Expenditure -623.65-765.91-938.15-892.15-995.34-1,091.46-1,196.87-1,312.45-1,439.19-1,578.17
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 69.75
Beta 0.159
Diluted Shares Outstanding 56.08
Cost of Debt
Tax Rate 18.66
After-tax Cost of Debt 1.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.556
Total Debt 6,322.01
Total Equity 3,911.30
Total Capital 10,233.31
Debt Weighting 61.78
Equity Weighting 38.22
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 2,548.792,880.013,119.923,298.873,680.454,035.874,425.624,8535,321.655,835.57
EBITDA 587.94589.84682.42748.24730.67871.39955.541,047.821,1491,259.96
EBIT 336.99340.63379.19416.21359.63481527.45578.39634.24695.49
Tax Rate 25.17%25.09%21.54%21.58%18.66%22.41%22.41%22.41%22.41%22.41%
EBIAT 252.18255.16297.51326.41292.51373.22409.26448.78492.12539.65
Depreciation 250.95249.21303.24332.03371.04390.39428.09469.43514.76564.47
Accounts Receivable --72.24-79.1762.78-286.6773.30-71.03-77.89-85.41-93.66
Inventories ----------
Accounts Payable -20.68-10.07-7.62122.06-15.3732.6435.7939.2543.04
Capital Expenditure -623.65-765.91-938.15-892.15-715.63-1,091.46-1,196.87-1,312.45-1,439.19-1,578.17
UFCF -120.51-313.11-426.64-178.56-496.40-269.92-397.91-436.33-478.47-524.68
WACC
PV UFCF -262.85-377.34-402.94-430.27-459.46
SUM PV UFCF -1,932.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.69
Free cash flow (t + 1) -535.17
Terminal Value -77,561.05
Present Value of Terminal Value -67,920.82

Intrinsic Value

Enterprise Value -69,853.68
Net Debt 6,099.31
Equity Value -75,952.99
Shares Outstanding 56.08
Equity Value Per Share -1,354.47