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 8,2017,71910,62710,96512,243.3913,670.8315,264.6917,044.3819,031.5521,250.41
Revenue (%)
EBITDA 4,0853,1835,0495,6305,812.656,490.337,247.038,091.959,035.3810,088.80
EBITDA (%)
EBIT 2,3711,4623,2073,6213,399.153,795.454,237.954,732.055,283.755,899.78
EBIT (%)
Depreciation 1,7141,7211,8422,0092,413.502,694.883,009.083,359.903,751.634,189.02
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 2891421,680152690.48770.99860.87961.241,073.311,198.45
Total Cash (%)
Account Receivables 9969991,9782,7232,097.712,342.272,615.362,920.283,260.753,640.91
Account Receivables (%)
Inventories 125136379320299.07333.94372.87416.35464.89519.09
Inventories (%)
Accounts Payable 5524821,7462,3271,549.621,730.291,932.022,157.272,408.782,689.62
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 8,2017,71910,62710,96512,243.3913,670.8315,264.6917,044.3819,031.5521,250.41
EBITDA 4,0853,1835,0495,6305,812.656,490.337,247.038,091.959,035.3810,088.80
EBIT 2,3711,4623,2073,6213,399.153,795.454,237.954,732.055,283.755,899.78
Tax Rate 20.11%23.83%26.82%19.39%22.54%22.54%22.54%22.54%22.54%22.54%
EBIAT 1,894.131,113.652,346.852,918.742,633.022,940.013,282.783,665.514,092.874,570.05
Depreciation 1,7141,7211,8422,0092,413.502,694.883,009.083,359.903,751.634,189.02
Accounts Receivable --3-979-745625.29-244.57-273.08-304.92-340.47-380.17
Inventories --11-2435920.93-34.87-38.93-43.47-48.54-54.20
Accounts Payable --701,264581-777.38180.67201.73225.25251.51280.84
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 1,459.131,475.652,983.852,539.742,611.262,963.383,308.873,694.654,125.404,606.38
WACC
PV UFCF 2,611.262,761.252,872.892,989.043,109.883,235.61
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