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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 1,123.10825.461,176.762,161.891,968.822,250.162,571.712,939.213,359.22
EBITDA (%)
EBIT 592.42276.0273.87674.88475.86543.86621.58710.41811.92
EBIT (%)
Depreciation 530.68549.431,102.891,487.021,492.951,706.301,950.132,228.802,547.30
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 1,431.83981.137,029.613,722.115,639.766,445.687,366.778,419.489,622.62
Total Cash (%)
Account Receivables 2,818.602,562.716,014.345,968.657,033.368,038.439,187.1210,499.9612,000.40
Account Receivables (%)
Inventories 3,671.363,224.644,507.754,618.906,194.067,079.198,090.819,246.9910,568.38
Inventories (%)
Accounts Payable 2,221.171,898.163,377.384,024.094,510.245,154.755,891.376,733.247,695.42
Accounts Payable (%)
Capital Expenditure -577.40-404.23-493.03-537.61-724.25-827.75-946.03-1,081.22-1,235.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 21.1
Diluted Shares Outstanding -
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 -
Total Capital 6,285.00
Debt Weighting 100.00
Equity Weighting 0.00
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 1,123.10825.461,176.762,161.891,968.822,250.162,571.712,939.213,359.22
EBIT 592.42276.0273.87674.88475.86543.86621.58710.41811.92
Tax Rate 100.00%100.00%-77.59%56.95%40.04%40.04%40.04%40.04%40.04%
EBIAT --131.18290.51285.33326.11372.71425.97486.84
Depreciation 530.68549.431,102.891,487.021,492.951,706.301,950.132,228.802,547.30
Accounts Receivable -255.89-3,451.6345.69-1,064.71-1,005.07-1,148.69-1,312.84-1,500.44
Inventories -446.72-1,283.10-111.15-1,575.16-885.13-1,011.62-1,156.18-1,321.39
Accounts Payable --323.011,479.22646.72486.15644.51736.61841.88962.18
Capital Expenditure --173.1888.8144.58186.64103.50118.29135.19154.51
UFCF 530.68755.85-1,932.642,403.36-188.79890.221,017.431,162.821,328.98
WACC
PV UFCF -192.85890.22996.011,114.381,246.82
SUM PV UFCF -

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.15
Free cash flow (t + 1) 1,382.14
Terminal Value -74,710.50
Present Value of Terminal Value -67,172.24

Intrinsic Value

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

Results Unlevered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
4.15 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
3.65 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
3.15 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
2.65 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
2.15 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
1.65 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
1.15 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
0.65 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell
0.15 (%) - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell - Sell