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Discounted Cash Flow (DCF) Analysis Unlevered


Caesars Entertainment Corporation

Caesars Entertainment Corporation (CZR)

Consumer Cyclical

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 8,220.007,966.823,929.243,877.374,868.438,391.719,110.889,891.6810,739.4011,659.7612,659.01
Revenue (%)
EBITDA -1,491.11-58.956,959.86-1,683.94-963.952,672.761,926.952,092.092,271.382,466.042,677.38
EBITDA (%)
EBIT -2,212.82-709.846,585.80-2,122.86-1,590.031,528.13950.261,031.701,120.121,216.111,320.33
EBIT (%)
Depreciation 721.72650.89374.06438.92626.081,144.63976.691,060.391,151.261,249.931,357.05
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 3,195.942,990.751,394.094,657.892,708.791,657.364,668.415,068.505,502.875,974.466,486.47
Total Cash (%)
Account Receivables 619.79517.84168.17290.03504.86463.22633.21687.47746.39810.35879.80
Account Receivables (%)
Inventories 45.2143.0220.8220.1638.9541.1251.9356.3861.2166.4672.16
Inventories (%)
Accounts Payable 832.691,085.08308.05214.81317.91398.61735.25798.26866.67940.941,021.58
Accounts Payable (%)
Capital Expenditure -725.83-991.07-341.06-219.85-597.84-564.76-830.00-901.13-978.36-1,062.20-1,153.24
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 13.02
Diluted Shares Outstanding 686.00
Cost of Debt
Tax Rate -66.48
After-tax Cost of Debt 3.37
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.03
Total Debt 18,858.00
Total Equity 8,931.72
Total Capital 27,789.72
Debt Weighting 67.86
Equity Weighting 32.14
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 8,220.007,966.823,929.243,877.374,868.438,391.719,110.889,891.6810,739.4011,659.7612,659.01
EBITDA -1,491.11-58.956,959.86-1,683.94-963.952,672.761,926.952,092.092,271.382,466.042,677.38
EBIT -2,212.82-709.846,585.80-2,122.86-1,590.031,528.13950.261,031.701,120.121,216.111,320.33
Tax Rate 33.98%17.64%-1.80%-12.01%84.43%-66.48%9.29%9.29%9.29%9.29%9.29%
EBIAT -1,461.01-584.646,704.06-2,377.89-247.622,544.08861.97935.841,016.051,103.121,197.66
Depreciation 721.72650.89374.06438.92626.081,144.63976.691,060.391,151.261,249.931,357.05
Accounts Receivable -101.94349.67-121.86-214.8341.63-169.98-54.27-58.92-63.97-69.45
Inventories -2.1922.200.66-18.79-2.17-10.81-4.45-4.83-5.25-5.70
Accounts Payable -252.40-777.03-93.25103.1080.70336.6463.0168.4174.2780.64
Capital Expenditure -265.25-650.02-121.21378.00-33.08265.2471.1377.2383.8591.03
UFCF -739.29688.036,022.94-2,274.62625.943,775.792,259.742,071.662,249.202,441.952,651.23
WACC
PV UFCF 2,063.501,727.471,712.641,697.941,683.37
SUM PV UFCF 10,641.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.51
Free cash flow (t + 1) 2,757.28
Terminal Value 50,041.37
Present Value of Terminal Value 31,773.15

Intrinsic Value

Enterprise Value 42,414.43
Net Debt 17,200.64
Equity Value 25,213.79
Shares Outstanding 686.00
Equity Value Per Share 36.75