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
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 | 8,686 | 8,201 | 7,719 | 10,627 | 10,965 | 11,770.73 | 12,635.67 | 13,564.16 | 14,560.89 | 15,630.85 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 2,820 | 4,085 | 3,183 | 5,049 | 5,630 | 5,234.90 | 5,619.57 | 6,032.50 | 6,475.78 | 6,951.64 |
EBITDA (%) | ||||||||||
EBIT | 1,095 | 2,371 | 1,462 | 3,207 | 3,621 | 2,911.11 | 3,125.03 | 3,354.66 | 3,601.17 | 3,865.79 |
EBIT (%) | ||||||||||
Depreciation | 1,725 | 1,714 | 1,721 | 1,842 | 2,009 | 2,323.78 | 2,494.54 | 2,677.84 | 2,874.62 | 3,085.85 |
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 | 168 | 289 | 142 | 1,680 | 152 | 576.59 | 618.96 | 664.45 | 713.27 | 765.68 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 992 | 996 | 999 | 1,978 | 2,723 | 1,882.24 | 2,020.55 | 2,169.02 | 2,328.41 | 2,499.50 |
Account Receivables (%) | ||||||||||
Inventories | 130 | 125 | 136 | 379 | 320 | 265.25 | 284.75 | 305.67 | 328.13 | 352.24 |
Inventories (%) | ||||||||||
Accounts Payable | 662 | 552 | 482 | 1,746 | 2,327 | 1,371.26 | 1,472.02 | 1,580.19 | 1,696.30 | 1,820.95 |
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 | 8,686 | 8,201 | 7,719 | 10,627 | 10,965 | 11,770.73 | 12,635.67 | 13,564.16 | 14,560.89 | 15,630.85 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 2,820 | 4,085 | 3,183 | 5,049 | 5,630 | 5,234.90 | 5,619.57 | 6,032.50 | 6,475.78 | 6,951.64 |
EBIT | 1,095 | 2,371 | 1,462 | 3,207 | 3,621 | 2,911.11 | 3,125.03 | 3,354.66 | 3,601.17 | 3,865.79 |
Tax Rate | 146.83% | 20.11% | 23.83% | 26.82% | 19.39% | 47.40% | 47.40% | 47.40% | 47.40% | 47.40% |
EBIAT | -512.76 | 1,894.13 | 1,113.65 | 2,346.85 | 2,918.74 | 1,531.35 | 1,643.87 | 1,764.67 | 1,894.34 | 2,033.54 |
Depreciation | 1,725 | 1,714 | 1,721 | 1,842 | 2,009 | 2,323.78 | 2,494.54 | 2,677.84 | 2,874.62 | 3,085.85 |
Accounts Receivable | - | -4 | -3 | -979 | -745 | 840.76 | -138.31 | -148.47 | -159.38 | -171.10 |
Inventories | - | 5 | -11 | -243 | 59 | 54.75 | -19.49 | -20.92 | -22.46 | -24.11 |
Accounts Payable | - | -110 | -70 | 1,264 | 581 | -955.74 | 100.76 | 108.17 | 116.12 | 124.65 |
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 | -2,050.76 | 1,350.13 | 1,475.65 | 2,983.85 | 2,539.74 | 1,138.41 | 1,229.68 | 1,320.04 | 1,417.04 | 1,521.16 |
WACC | ||||||||||
PV UFCF | 1,063.04 | 1,072.24 | 1,074.83 | 1,077.42 | 1,080.02 | |||||
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 |