Discounted Cash Flow (DCF) Analysis Levered

Huntington Ingalls Industries Inc (HII)

$185.61
6.24 (+3.48%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 6,820.006,957.007,020.007,068.007,441.008,176.008,899.009,361.009,799.4710,258.4710,738.9711,241.9811,768.55
Revenue (%)
Operating Cash Flow 236.00716.00828.00822.00814.00914.00896.001,093.00992.691,039.181,087.861,138.811,192.15
Operating Cash Flow (%)
Capital Expenditure -139.00-165.00-188.00-285.00-382.00-463.00-530.00-353.00-387.61-405.77-424.77-444.67-465.50
Capital Expenditure (%)
Free Cash Flow 97.00551.00640.00537.00432.00451.00366.00740.00605.08633.42663.09694.14726.66

Weighted Average Cost Of Capital

Share price $ 185.61
Beta 0.929
Diluted Shares Outstanding 41.40
Cost of Debt
Tax Rate 14.07
After-tax Cost of Debt 4.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.854
Total Debt 1,794.00
Total Equity 7,684.25
Total Capital 9,478.25
Debt Weighting 18.93
Equity Weighting 81.07
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 6,820.006,957.007,020.007,068.007,441.008,176.008,899.009,361.009,799.4710,258.4710,738.9711,241.9811,768.55
Operating Cash Flow 236.00716.00828.00822.00814.00914.00896.001,093.00992.691,039.181,087.861,138.811,192.15
Capital Expenditure -139.00-165.00-188.00-285.00-382.00-463.00-530.00-353.00-387.61-405.77-424.77-444.67-465.50
Free Cash Flow 97.00551.00640.00537.00432.00451.00366.00740.00605.08633.42663.09694.14726.66
WACC
PV LFCF 556.14535.10514.85495.37476.63
SUM PV LFCF 2,578.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.80
Free cash flow (t + 1) 755.72
Terminal Value 15,744.24
Present Value of Terminal Value 10,327.07

Intrinsic Value

Enterprise Value 12,905.17
Net Debt 1,282.00
Equity Value 11,623.17
Shares Outstanding 41.40
Equity Value Per Share 280.75