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	8,686	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