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
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 |