Discounted Cash Flow (DCF) Analysis Unlevered

Wells Fargo & Company (WFC)

$39.92

+0.75 (+1.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 446.42 | 39.92 | undervalue

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 86,27386,40885,06372,34078,49276,951.0275,440.2873,959.2172,507.2271,083.73
Revenue (%)
EBITDA 41,85848,30049,63316,99538,93136,298.7335,586.1034,887.4634,202.5433,531.06
EBITDA (%)
EBIT 36,45242,70742,5588,25931,04129,652.5429,070.3928,499.6727,940.1527,391.62
EBIT (%)
Depreciation 5,4065,5937,0758,7367,8906,646.206,515.716,387.806,262.396,139.44
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 26,357178,347155,708316,056236,731178,296.17174,795.79171,364.13167,999.85164,701.61
Total Cash (%)
Account Receivables 64,20060,06154,55455,98637,35551,255.6750,249.4049,262.8848,295.7447,347.58
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 39.92
Beta 1.137
Diluted Shares Outstanding 4,134.20
Cost of Debt
Tax Rate 25.22
After-tax Cost of Debt 1.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.258
Total Debt 173,907
Total Equity 165,037.26
Total Capital 338,944.26
Debt Weighting 51.31
Equity Weighting 48.69
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 86,27386,40885,06372,34078,49276,951.0275,440.2873,959.2172,507.2271,083.73
EBITDA 41,85848,30049,63316,99538,93136,298.7335,586.1034,887.4634,202.5433,531.06
EBIT 36,45242,70742,5588,25931,04129,652.5429,070.3928,499.6727,940.1527,391.62
Tax Rate 18.97%21.53%19.21%-468.16%25.22%-76.64%-76.64%-76.64%-76.64%-76.64%
EBIAT 29,536.2833,511.0334,381.6246,924.2023,211.8152,379.3851,351.0550,342.9049,354.5548,385.60
Depreciation 5,4065,5937,0758,7367,8906,646.206,515.716,387.806,262.396,139.44
Accounts Receivable -4,1395,507-1,43218,631-13,900.671,006.27986.52967.15948.16
Inventories ----------
Accounts Payable ----------
Capital Expenditure ----------
UFCF -----45,124.9058,873.0357,717.2156,584.0955,473.21
WACC
PV UFCF 43,025.2753,521.8450,029.6346,765.2943,713.93
SUM PV UFCF 237,055.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.88
Free cash flow (t + 1) 56,582.67
Terminal Value 1,964,676.06
Present Value of Terminal Value 1,548,201.77

Intrinsic Value

Enterprise Value 1,785,257.73
Net Debt -60,323
Equity Value 1,845,580.73
Shares Outstanding 4,134.20
Equity Value Per Share 446.42