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Discounted Cash Flow (DCF) Analysis Unlevered


Baker Hughes a GE company Class A

Baker Hughes a GE company Class A (BHGE)

Energy

Operating Data

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 16,688.0013,081.7217,178.9222,877.1726,146.3129,882.6234,152.8539,033.2944,611.15
Revenue (%)
EBITDA 1,123.10825.461,176.762,161.891,916.522,190.402,503.402,861.143,270.00
EBITDA (%)
EBIT 592.42276.0273.87674.88590.91675.35771.85882.151,008.21
EBIT (%)
Depreciation 530.68549.431,102.891,487.021,325.621,515.051,731.551,978.992,261.79
Depreciation (%)

Balance Sheet Data

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 1,431.83981.137,029.613,722.114,790.005,474.506,256.807,150.908,172.76
Total Cash (%)
Account Receivables 2,818.602,562.716,014.345,968.656,379.707,291.368,333.299,524.1210,885.12
Account Receivables (%)
Inventories 3,671.363,224.644,507.754,618.906,084.256,953.697,947.379,083.0510,381.01
Inventories (%)
Accounts Payable 2,221.171,898.163,377.384,024.094,254.014,861.905,556.676,350.727,258.23
Accounts Payable (%)
Capital Expenditure -577.40-404.23-493.03-537.61-768.70-878.55-1,004.09-1,147.58-1,311.57
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 22.05
Diluted Shares Outstanding 1,099.93
Cost of Debt
Tax Rate 56.95
After-tax Cost of Debt -2.80
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.53
Total Debt 6,285.00
Total Equity 24,253.47
Total Capital 30,538.47
Debt Weighting 20.58
Equity Weighting 79.42
Wacc

Build Up Free Cash

Year
A/P
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 16,688.0013,081.7217,178.9222,877.1726,146.3129,882.6234,152.8539,033.2944,611.15
EBITDA 1,123.10825.461,176.762,161.891,916.522,190.402,503.402,861.143,270.00
EBIT 592.42276.0273.87674.88590.91675.35771.85882.151,008.21
Tax Rate 100.00%100.00%-77.59%56.95%44.84%44.84%44.84%44.84%44.84%
EBIAT --131.18290.51325.93372.51425.74486.58556.11
Depreciation 530.68549.431,102.891,487.021,325.621,515.051,731.551,978.992,261.79
Accounts Receivable -255.89-3,451.6345.69-411.05-911.66-1,041.94-1,190.83-1,361.00
Inventories -446.72-1,283.10-111.15-1,465.35-869.44-993.68-1,135.68-1,297.97
Accounts Payable --323.011,479.22646.72229.91607.90694.77794.05907.52
Capital Expenditure --173.1888.8144.58231.09109.85125.54143.48163.99
UFCF 530.68755.85-1,932.642,403.36236.16824.20941.981,076.591,230.44
WACC
PV UFCF 258.83824.20859.47896.25934.60
SUM PV UFCF -

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.60
Free cash flow (t + 1) 1,330.02
Terminal Value 23,750.33
Present Value of Terminal Value 15,018.16

Intrinsic Value

Enterprise Value -
Net Debt 2,562.89
Equity Value -
Shares Outstanding 1,099.93
Equity Value Per Share -