Discounted Cash Flow (DCF) Analysis Unlevered

Telephone and Data Systems, Inc. (TDS)

$10.29

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: -35.32 | 10.29 | 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 5,0445,1095,1765,2255,3295,402.775,477.565,553.385,630.265,708.20
Revenue (%)
EBITDA 8881,2361,2821,3221,3161,259.521,276.951,294.631,312.551,330.72
EBITDA (%)
EBIT 44353350413421327.93332.47337.07341.74346.47
EBIT (%)
Depreciation 844883932909895931.59944.49957.56970.82984.26
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 7199384651,432367820.05831.40842.91854.58866.41
Total Cash (%)
Account Receivables 9631,1111,1601,2991,3351,222.781,239.701,256.861,274.261,291.90
Account Receivables (%)
Inventories 145150169154178166.01168.31170.64173175.39
Inventories (%)
Accounts Payable 368365374508481436.70442.74448.87455.09461.39
Accounts Payable (%)
Capital Expenditure -685-776-957-1,368-1,151-1,026.95-1,041.17-1,055.58-1,070.19-1,085.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 10.29
Beta 1.094
Diluted Shares Outstanding 115
Cost of Debt
Tax Rate 29.41
After-tax Cost of Debt 4.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.570
Total Debt 4,035
Total Equity 1,183.35
Total Capital 5,218.35
Debt Weighting 77.32
Equity Weighting 22.68
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 5,0445,1095,1765,2255,3295,402.775,477.565,553.385,630.265,708.20
EBITDA 8881,2361,2821,3221,3161,259.521,276.951,294.631,312.551,330.72
EBIT 44353350413421327.93332.47337.07341.74346.47
Tax Rate 225.41%38.91%42.65%21.53%29.41%71.58%71.58%71.58%71.58%71.58%
EBIAT -55.18215.63200.71324.09297.1893.1994.4895.7897.1198.45
Depreciation 844883932909895931.59944.49957.56970.82984.26
Accounts Receivable --148-49-139-36112.22-16.93-17.16-17.40-17.64
Inventories --5-1915-2411.99-2.30-2.33-2.36-2.39
Accounts Payable --39134-27-44.306.056.136.216.30
Capital Expenditure -685-776-957-1,368-1,151-1,026.95-1,041.17-1,055.58-1,070.19-1,085.01
UFCF 103.82166.63116.71-124.91-45.8277.74-15.38-15.60-15.81-16.03
WACC
PV UFCF 73.98-13.93-13.44-12.97-12.51
SUM PV UFCF 21.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.08
Free cash flow (t + 1) -16.35
Terminal Value -530.88
Present Value of Terminal Value -414.38

Intrinsic Value

Enterprise Value -393.25
Net Debt 3,668
Equity Value -4,061.25
Shares Outstanding 115
Equity Value Per Share -35.32