Discounted Cash Flow (DCF) Analysis Unlevered
Warner Bros. Discovery, Inc. (WBD)
$13.12
+1.02 (+8.43%)
All numbers are in Millions, Currency in USD
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 | 10,553 | 11,144 | 10,671 | 12,191 | 33,817 | 50,133.13 | 74,321.52 | 110,180.40 | 163,340.58 | 242,149.64 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 6,350 | 7,027 | 6,555 | 6,958 | 14,097 | 28,417.26 | 42,128.11 | 62,454.22 | 92,587.32 | 137,259.14 |
EBITDA (%) | ||||||||||
EBIT | 1,664 | 2,827 | 2,240 | 1,875 | -7,257 | 5,619.72 | 8,331.14 | 12,350.78 | 18,309.82 | 27,144 |
EBIT (%) | ||||||||||
Depreciation | 4,686 | 4,200 | 4,315 | 5,083 | 21,354 | 22,797.54 | 33,796.97 | 50,103.44 | 74,277.50 | 110,115.14 |
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 | 986 | 1,552 | 2,091 | 3,905 | 3,731 | 8,615.88 | 12,772.90 | 18,935.60 | 28,071.71 | 41,615.84 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 2,620 | 2,633 | 2,537 | 2,446 | 7,611 | 11,510.49 | 17,064.11 | 25,297.25 | 37,502.75 | 55,597.20 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | - | - | - | - | - | - | - |
Inventories (%) | ||||||||||
Accounts Payable | 325 | 463 | 397 | 412 | 1,454 | 1,868.35 | 2,769.80 | 4,106.18 | 6,087.35 | 9,024.39 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -147 | -289 | -402 | -373 | -987 | -1,376.84 | -2,041.14 | -3,025.95 | -4,485.92 | -6,650.30 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 13.12 |
---|---|
Beta | 1.476 |
Diluted Shares Outstanding | 1,940 |
Cost of Debt | |
Tax Rate | 17.73 |
After-tax Cost of Debt | 2.99% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 10.753 |
Total Debt | 48,999 |
Total Equity | 25,452.80 |
Total Capital | 74,451.80 |
Debt Weighting | 65.81 |
Equity Weighting | 34.19 |
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 | 10,553 | 11,144 | 10,671 | 12,191 | 33,817 | 50,133.13 | 74,321.52 | 110,180.40 | 163,340.58 | 242,149.64 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 6,350 | 7,027 | 6,555 | 6,958 | 14,097 | 28,417.26 | 42,128.11 | 62,454.22 | 92,587.32 | 137,259.14 |
EBIT | 1,664 | 2,827 | 2,240 | 1,875 | -7,257 | 5,619.72 | 8,331.14 | 12,350.78 | 18,309.82 | 27,144 |
Tax Rate | 41.88% | 9.81% | 29.46% | 29.80% | 17.73% | 25.73% | 25.73% | 25.73% | 25.73% | 25.73% |
EBIAT | 967.14 | 2,549.72 | 1,580.19 | 1,316.29 | -5,970.02 | 4,173.49 | 6,187.13 | 9,172.31 | 13,597.79 | 20,158.50 |
Depreciation | 4,686 | 4,200 | 4,315 | 5,083 | 21,354 | 22,797.54 | 33,796.97 | 50,103.44 | 74,277.50 | 110,115.14 |
Accounts Receivable | - | -13 | 96 | 91 | -5,165 | -3,899.49 | -5,553.62 | -8,233.14 | -12,205.50 | -18,094.44 |
Inventories | - | - | - | - | - | - | - | - | - | - |
Accounts Payable | - | 138 | -66 | 15 | 1,042 | 414.35 | 901.45 | 1,336.38 | 1,981.16 | 2,937.04 |
Capital Expenditure | -147 | -289 | -402 | -373 | -987 | -1,376.84 | -2,041.14 | -3,025.95 | -4,485.92 | -6,650.30 |
UFCF | 5,506.14 | 6,585.72 | 5,523.19 | 6,132.29 | 10,273.98 | 22,109.06 | 33,290.79 | 49,353.04 | 73,165.04 | 108,465.94 |
WACC | ||||||||||
PV UFCF | 20,928.68 | 29,830.97 | 41,862.84 | 58,747.59 | 82,442.55 | |||||
SUM PV UFCF | 233,812.62 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.64 |
Free cash flow (t + 1) | 110,635.26 |
Terminal Value | 3,039,430.12 |
Present Value of Terminal Value | 2,310,203.30 |
Intrinsic Value
Enterprise Value | 2,544,015.92 |
---|---|
Net Debt | 45,268 |
Equity Value | 2,498,747.92 |
Shares Outstanding | 1,940 |
Equity Value Per Share | 1,288.01 |