Discounted Cash Flow (DCF) Analysis Unlevered

Paramount Global (VIAC)

$29.58

-6.41 (-17.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 96.72 | 29.58 | 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 14,51427,81225,28528,58630,15437,773.6347,318.6859,275.6674,254.0693,017.37
Revenue (%)
EBITDA 2,9794,8635,1814,4463,3186,425.848,049.5910,083.6512,631.6915,823.61
EBITDA (%)
EBIT 2,7564,4204,7514,0562,9135,856.427,336.289,190.0911,512.3414,421.40
EBIT (%)
Depreciation 223443430390405569.42713.31893.561,119.351,402.20
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 3226322,9846,2672,8853,609.904,522.085,664.777,096.218,889.35
Total Cash (%)
Account Receivables 4,0417,2067,0176,9847,4129,860.0812,351.6315,472.7819,382.6024,280.40
Account Receivables (%)
Inventories 1,9882,8761,7571,5041,3423,074.673,851.604,824.876,044.077,571.35
Inventories (%)
Accounts Payable 2016675718001,4031,019.341,276.921,599.582,003.782,510.12
Accounts Payable (%)
Capital Expenditure -165-353-324-354-358-461.83-578.52-724.71-907.84-1,137.24
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 29.58
Beta 1.476
Diluted Shares Outstanding 650
Cost of Debt
Tax Rate 12.80
After-tax Cost of Debt 4.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.242
Total Debt 17,274
Total Equity 19,227
Total Capital 36,501
Debt Weighting 47.32
Equity Weighting 52.68
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 14,51427,81225,28528,58630,15437,773.6347,318.6859,275.6674,254.0693,017.37
EBITDA 2,9794,8635,1814,4463,3186,425.848,049.5910,083.6512,631.6915,823.61
EBIT 2,7564,4204,7514,0562,9135,856.427,336.289,190.0911,512.3414,421.40
Tax Rate 14.37%1.11%23.04%12.74%12.80%12.81%12.81%12.81%12.81%12.81%
EBIAT 2,359.884,371.113,656.473,539.462,540.255,106.236,396.538,012.8710,037.6512,574.06
Depreciation 223443430390405569.42713.31893.561,119.351,402.20
Accounts Receivable --3,16518933-428-2,448.08-2,491.55-3,121.14-3,909.83-4,897.80
Inventories --8881,119253162-1,732.67-776.94-973.26-1,219.20-1,527.28
Accounts Payable -466-96229603-383.66257.58322.66404.20506.34
Capital Expenditure -165-353-324-354-358-461.83-578.52-724.71-907.84-1,137.24
UFCF 2,417.88874.114,974.474,090.462,924.25649.423,520.404,409.975,524.336,920.28
WACC
PV UFCF 600.483,009.813,486.234,038.074,677.25
SUM PV UFCF 15,811.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.15
Free cash flow (t + 1) 6,954.88
Terminal Value 90,913.45
Present Value of Terminal Value 61,446.27

Intrinsic Value

Enterprise Value 77,258.11
Net Debt 14,389
Equity Value 62,869.11
Shares Outstanding 650
Equity Value Per Share 96.72