Discounted Cash Flow (DCF) Analysis Unlevered

Telefónica, S.A. (TNE5.DE)

3.747 €

+0.01 (+0.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 7.62 | 3.747 | 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 48,69348,42243,07639,27739,99338,133.9936,361.4034,671.2033,059.5731,522.85
Revenue (%)
EBITDA 15,67613,32515,36822,91713,10014,223.3213,562.1712,931.7612,330.6511,757.48
EBITDA (%)
EBIT 6,6274,326.367,362.8515,617.855,667.797,136.586,804.856,488.546,186.935,899.34
EBIT (%)
Depreciation 9,0498,998.648,005.157,299.157,432.217,086.746,757.326,443.226,143.725,858.14
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 7,9019,1658,09912,4159,6898,373.527,984.297,613.157,259.276,921.83
Total Cash (%)
Account Receivables 12,25512,3468,42510,40711,3479,540.519,097.038,674.178,270.977,886.51
Account Receivables (%)
Inventories 1,6921,9991,7181,7491,5461,518.501,447.921,380.611,316.441,255.25
Inventories (%)
Accounts Payable 15,48514,90310,91213,21013,50911,846.0911,295.4410,770.3910,269.759,792.38
Accounts Payable (%)
Capital Expenditure -8,777-8,410-7,020-6,164-5,508-6,189.62-5,901.90-5,627.56-5,365.98-5,116.55
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 3.747
Beta 0.689
Diluted Shares Outstanding 5,740
Cost of Debt
Tax Rate 39.12
After-tax Cost of Debt 21.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.583
Total Debt 8,677
Total Equity 21,507.78
Total Capital 30,184.78
Debt Weighting 28.75
Equity Weighting 71.25
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 48,69348,42243,07639,27739,99338,133.9936,361.4034,671.2033,059.5731,522.85
EBITDA 15,67613,32515,36822,91713,10014,223.3213,562.1712,931.7612,330.6511,757.48
EBIT 6,6274,326.367,362.8515,617.855,667.797,136.586,804.856,488.546,186.935,899.34
Tax Rate 40.21%38.78%38.75%32.72%39.12%37.92%37.92%37.92%37.92%37.92%
EBIAT 3,962.402,648.664,509.5010,507.023,450.464,430.594,224.644,028.273,841.023,662.48
Depreciation 9,0498,998.648,005.157,299.157,432.217,086.746,757.326,443.226,143.725,858.14
Accounts Receivable --913,921-1,982-9401,806.49443.47422.86403.20384.46
Inventories --307281-3120327.5070.5967.3064.1861.19
Accounts Payable --582-3,9912,298299-1,662.91-550.65-525.05-500.64-477.37
Capital Expenditure -8,777-8,410-7,020-6,164-5,508-6,189.62-5,901.90-5,627.56-5,365.98-5,116.55
UFCF 4,234.402,257.305,705.6511,927.174,936.675,498.795,043.474,809.044,585.504,372.35
WACC
PV UFCF 4,931.214,056.043,468.302,965.732,535.98
SUM PV UFCF 17,957.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.51
Free cash flow (t + 1) 4,459.79
Terminal Value 46,895.84
Present Value of Terminal Value 27,199.77

Intrinsic Value

Enterprise Value 45,157.03
Net Debt 1,432
Equity Value 43,725.03
Shares Outstanding 5,740
Equity Value Per Share 7.62