Discounted Cash Flow (DCF) Analysis Unlevered

The Williams Companies, Inc. (WMB)

$28.74

+0.44 (+1.55%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.50 | 28.74 | overvalue

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 8,6868,2017,71910,62710,96511,770.7312,635.6713,564.1614,560.8915,630.85
Revenue (%)
EBITDA 2,8204,0853,1835,0495,6305,234.905,619.576,032.506,475.786,951.64
EBITDA (%)
EBIT 1,0952,3711,4623,2073,6212,911.113,125.033,354.663,601.173,865.79
EBIT (%)
Depreciation 1,7251,7141,7211,8422,0092,323.782,494.542,677.842,874.623,085.85
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 1682891421,680152576.59618.96664.45713.27765.68
Total Cash (%)
Account Receivables 9929969991,9782,7231,882.242,020.552,169.022,328.412,499.50
Account Receivables (%)
Inventories 130125136379320265.25284.75305.67328.13352.24
Inventories (%)
Accounts Payable 6625524821,7462,3271,371.261,472.021,580.191,696.301,820.95
Accounts Payable (%)
Capital Expenditure -3,263-2,149-1,275-1,247-2,283-2,656.49-2,851.69-3,061.24-3,286.19-3,527.67
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 28.74
Beta 1.208
Diluted Shares Outstanding 1,218.21
Cost of Debt
Tax Rate 19.39
After-tax Cost of Debt 4.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.082
Total Debt 22,904
Total Equity 35,011.50
Total Capital 57,915.50
Debt Weighting 39.55
Equity Weighting 60.45
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 8,6868,2017,71910,62710,96511,770.7312,635.6713,564.1614,560.8915,630.85
EBITDA 2,8204,0853,1835,0495,6305,234.905,619.576,032.506,475.786,951.64
EBIT 1,0952,3711,4623,2073,6212,911.113,125.033,354.663,601.173,865.79
Tax Rate 146.83%20.11%23.83%26.82%19.39%47.40%47.40%47.40%47.40%47.40%
EBIAT -512.761,894.131,113.652,346.852,918.741,531.351,643.871,764.671,894.342,033.54
Depreciation 1,7251,7141,7211,8422,0092,323.782,494.542,677.842,874.623,085.85
Accounts Receivable --4-3-979-745840.76-138.31-148.47-159.38-171.10
Inventories -5-11-2435954.75-19.49-20.92-22.46-24.11
Accounts Payable --110-701,264581-955.74100.76108.17116.12124.65
Capital Expenditure -3,263-2,149-1,275-1,247-2,283-2,656.49-2,851.69-3,061.24-3,286.19-3,527.67
UFCF -2,050.761,350.131,475.652,983.852,539.741,138.411,229.681,320.041,417.041,521.16
WACC
PV UFCF 1,063.041,072.241,074.831,077.421,080.02
SUM PV UFCF 5,367.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.09
Free cash flow (t + 1) 1,551.59
Terminal Value 30,483.05
Present Value of Terminal Value 21,642.82

Intrinsic Value

Enterprise Value 27,010.37
Net Debt 22,752
Equity Value 4,258.37
Shares Outstanding 1,218.21
Equity Value Per Share 3.50