Discounted Cash Flow (DCF) Analysis Unlevered

Westlake Corporation (WLK)

$82.95

-2.80 (-3.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 309.40 | 82.95 | 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 8,0418,6358,1187,50411,77813,273.5914,959.1016,858.6318,999.3721,411.95
Revenue (%)
EBITDA 1,8062,0631,3661,2463,6382,937.993,311.063,731.504,205.344,739.34
EBITDA (%)
EBIT 1,2051,4226534732,7981,846.542,081.022,345.272,643.072,978.70
EBIT (%)
Depreciation 6016417137738401,091.451,230.041,386.241,562.261,760.64
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 1,5317537282,3721,9082,244.232,529.212,850.373,212.323,620.22
Total Cash (%)
Account Receivables 1,0011,0371,0361,2141,8681,838.602,072.072,335.182,631.712,965.89
Account Receivables (%)
Inventories 9001,0149369181,4071,556.861,754.551,977.352,228.432,511.41
Inventories (%)
Accounts Payable 6005074735368648931,006.401,134.191,278.211,440.52
Accounts Payable (%)
Capital Expenditure -577-702-787-525-658-997.72-1,124.41-1,267.19-1,428.10-1,609.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 82.95
Beta 1.205
Diluted Shares Outstanding 128.91
Cost of Debt
Tax Rate 24.73
After-tax Cost of Debt 2.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.384
Total Debt 5,641
Total Equity 10,692.77
Total Capital 16,333.77
Debt Weighting 34.54
Equity Weighting 65.46
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 8,0418,6358,1187,50411,77813,273.5914,959.1016,858.6318,999.3721,411.95
EBITDA 1,8062,0631,3661,2463,6382,937.993,311.063,731.504,205.344,739.34
EBIT 1,2051,4226534732,7981,846.542,081.022,345.272,643.072,978.70
Tax Rate -20.63%25.34%26.14%-12.69%24.73%8.58%8.58%8.58%8.58%8.58%
EBIAT 1,453.581,061.70482.30533.022,106.081,688.151,902.512,144.102,416.362,723.19
Depreciation 6016417137738401,091.451,230.041,386.241,562.261,760.64
Accounts Receivable --361-178-65429.40-233.47-263.12-296.53-334.18
Inventories --1147818-489-149.86-197.69-222.80-251.09-282.97
Accounts Payable --93-346332829113.40127.79144.02162.31
Capital Expenditure -577-702-787-525-658-997.72-1,124.41-1,267.19-1,428.10-1,609.45
UFCF 1,477.58757.70453.30684.021,473.081,690.421,690.371,905.022,146.922,419.55
WACC
PV UFCF 1,580.571,477.821,557.251,640.941,729.14
SUM PV UFCF 7,985.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.95
Free cash flow (t + 1) 2,467.94
Terminal Value 49,857.30
Present Value of Terminal Value 35,630.74

Intrinsic Value

Enterprise Value 43,616.45
Net Debt 3,733
Equity Value 39,883.45
Shares Outstanding 128.91
Equity Value Per Share 309.40