Discounted Cash Flow (DCF) Analysis Unlevered

The Williams Companies, Inc. (WMB)

$30.39

-0.86 (-2.76%)

All numbers are in Millions, Currency in USD

Stock DCF: 44.53 | 30.39 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	8,201	7,719	10,627	10,965	12,243.39	13,670.83	15,264.69	17,044.38	19,031.55	21,250.41
Revenue (%)
EBITDA	4,085	3,183	5,049	5,630	5,812.65	6,490.33	7,247.03	8,091.95	9,035.38	10,088.80
EBITDA (%)
EBIT	2,371	1,462	3,207	3,621	3,399.15	3,795.45	4,237.95	4,732.05	5,283.75	5,899.78
EBIT (%)
Depreciation	1,714	1,721	1,842	2,009	2,413.50	2,694.88	3,009.08	3,359.90	3,751.63	4,189.02
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	289	142	1,680	152	690.48	770.99	860.87	961.24	1,073.31	1,198.45
Total Cash (%)
Account Receivables	996	999	1,978	2,723	2,097.71	2,342.27	2,615.36	2,920.28	3,260.75	3,640.91
Account Receivables (%)
Inventories	125	136	379	320	299.07	333.94	372.87	416.35	464.89	519.09
Inventories (%)
Accounts Payable	552	482	1,746	2,327	1,549.62	1,730.29	1,932.02	2,157.27	2,408.78	2,689.62
Accounts Payable (%)
Capital Expenditure	-2,149	-1,275	-1,247	-2,283	-2,304.11	-2,572.74	-2,872.69	-3,207.62	-3,581.59	-3,999.16
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 30.39
Beta	1.188
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	9.350
Total Debt	22,904
Total Equity	37,021.55
Total Capital	59,925.55
Debt Weighting	38.22
Equity Weighting	61.78
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	8,201	7,719	10,627	10,965	12,243.39	13,670.83	15,264.69	17,044.38	19,031.55	21,250.41
EBITDA	4,085	3,183	5,049	5,630	5,812.65	6,490.33	7,247.03	8,091.95	9,035.38	10,088.80
EBIT	2,371	1,462	3,207	3,621	3,399.15	3,795.45	4,237.95	4,732.05	5,283.75	5,899.78
Tax Rate	20.11%	23.83%	26.82%	19.39%	22.54%	22.54%	22.54%	22.54%	22.54%	22.54%
EBIAT	1,894.13	1,113.65	2,346.85	2,918.74	2,633.02	2,940.01	3,282.78	3,665.51	4,092.87	4,570.05
Depreciation	1,714	1,721	1,842	2,009	2,413.50	2,694.88	3,009.08	3,359.90	3,751.63	4,189.02
Accounts Receivable	-	-3	-979	-745	625.29	-244.57	-273.08	-304.92	-340.47	-380.17
Inventories	-	-11	-243	59	20.93	-34.87	-38.93	-43.47	-48.54	-54.20
Accounts Payable	-	-70	1,264	581	-777.38	180.67	201.73	225.25	251.51	280.84
Capital Expenditure	-2,149	-1,275	-1,247	-2,283	-2,304.11	-2,572.74	-2,872.69	-3,207.62	-3,581.59	-3,999.16
UFCF	1,459.13	1,475.65	2,983.85	2,539.74	2,611.26	2,963.38	3,308.87	3,694.65	4,125.40	4,606.38
WACC
PV UFCF					2,611.26	2,761.25	2,872.89	2,989.04	3,109.88	3,235.61
SUM PV UFCF										14,968.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.32
Free cash flow (t + 1)	4,698.51
Terminal Value	88,317.78
Present Value of Terminal Value	62,036.15

Intrinsic Value

Enterprise Value	77,004.82
Net Debt	22,752
Equity Value	54,252.82
Shares Outstanding	1,218.21
Equity Value Per Share	44.53