Discounted Cash Flow (DCF) Analysis Unlevered
Dominion Energy Inc. (D)
Utilities
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 | 13,120.00 | 12,436.45 | 11,682.80 | 11,736.54 | 12,585.09 | 13,365.37 | 13,434.87 | 13,504.73 | 13,574.95 | 13,645.54 | 13,716.50 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| EBITDA | 4,855.71 | 4,514.43 | 5,376.42 | 5,637.06 | 6,375.61 | 6,800.30 | 6,021.51 | 6,052.82 | 6,084.29 | 6,115.93 | 6,147.74 |
| EBITDA (%) | |||||||||||
| EBIT | 3,466.30 | 2,954.90 | 3,706.95 | 3,788.56 | 4,173.22 | 4,520.17 | 4,057.33 | 4,078.43 | 4,099.64 | 4,120.95 | 4,142.38 |
| EBIT (%) | |||||||||||
| Depreciation | 1,389.41 | 1,559.53 | 1,669.47 | 1,848.51 | 2,202.39 | 2,280.13 | 1,964.18 | 1,974.39 | 1,984.66 | 1,994.98 | 2,005.35 |
| 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 | 1,002.37 | 854.38 | 862.19 | 260.55 | 119.56 | 490.51 | 643.53 | 646.88 | 650.24 | 653.62 | 657.02 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||||
| Account Receivables | 1,835.49 | 1,632.91 | 1,369.22 | 1,706.49 | 1,785.82 | 2,079.65 | 1,862.07 | 1,871.76 | 1,881.49 | 1,891.27 | 1,901.11 |
| Account Receivables (%) | |||||||||||
| Inventories | 1,175.55 | 1,410.29 | 1,348.20 | 1,524.58 | 1,477.49 | 1,418.07 | 1,504.71 | 1,512.53 | 1,520.39 | 1,528.30 | 1,536.25 |
| Inventories (%) | |||||||||||
| Accounts Payable | 1,167.68 | 951.39 | 725.50 | 999.95 | 874.66 | 914.19 | 1,008.96 | 1,014.21 | 1,019.48 | 1,024.78 | 1,030.11 |
| Accounts Payable (%) | |||||||||||
| Capital Expenditure | -4,103.94 | -5,550.39 | -5,993.28 | -6,125.30 | -5,908.70 | -4,405.23 | -5,806.55 | -5,836.74 | -5,867.09 | -5,897.60 | -5,928.27 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 81.92 |
|---|---|
| Diluted Shares Outstanding | 655.08 |
| Cost of Debt | |
| Tax Rate | 19.16 |
| After-tax Cost of Debt | -0.91 |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.25 |
| Total Debt | 31,144.00 |
| Total Equity | 53,664.43 |
| Total Capital | 84,808.43 |
| Debt Weighting | 36.72 |
| Equity Weighting | 63.28 |
| 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 | 13,120.00 | 12,436.45 | 11,682.80 | 11,736.54 | 12,585.09 | 13,365.37 | 13,434.87 | 13,504.73 | 13,574.95 | 13,645.54 | 13,716.50 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 4,855.71 | 4,514.43 | 5,376.42 | 5,637.06 | 6,375.61 | 6,800.30 | 6,021.51 | 6,052.82 | 6,084.29 | 6,115.93 | 6,147.74 |
| EBIT | 3,466.30 | 2,954.90 | 3,706.95 | 3,788.56 | 4,173.22 | 4,520.17 | 4,057.33 | 4,078.43 | 4,099.64 | 4,120.95 | 4,142.38 |
| Tax Rate | 34.45% | 25.65% | 32.28% | 23.58% | -1.01% | 19.16% | 22.35% | 22.35% | 22.35% | 22.35% | 22.35% |
| EBIAT | 2,272.04 | 2,196.89 | 2,510.52 | 2,895.29 | 4,215.38 | 3,654.06 | 3,150.45 | 3,166.83 | 3,183.30 | 3,199.85 | 3,216.49 |
| Depreciation | 1,389.41 | 1,559.53 | 1,669.47 | 1,848.51 | 2,202.39 | 2,280.13 | 1,964.18 | 1,974.39 | 1,984.66 | 1,994.98 | 2,005.35 |
| Accounts Receivable | - | 202.58 | 263.68 | -337.27 | -79.33 | -293.83 | 217.58 | -9.68 | -9.73 | -9.78 | -9.83 |
| Inventories | - | -234.74 | 62.10 | -176.38 | 47.09 | 59.42 | -86.64 | -7.82 | -7.87 | -7.91 | -7.95 |
| Accounts Payable | - | -216.29 | -225.89 | 274.45 | -125.29 | 39.53 | 94.77 | 5.25 | 5.27 | 5.30 | 5.33 |
| Capital Expenditure | - | 1,446.45 | 442.89 | 132.02 | -216.60 | -1,503.48 | 1,401.32 | 30.19 | 30.35 | 30.51 | 30.67 |
| UFCF | 3,661.45 | 4,954.42 | 4,722.78 | 4,636.62 | 6,043.64 | 4,235.84 | 6,741.66 | 5,159.16 | 5,185.98 | 5,212.95 | 5,240.06 |
| WACC | |||||||||||
| PV UFCF | 6,471.78 | 4,754.37 | 4,587.79 | 4,427.04 | 4,271.92 | ||||||
| SUM PV UFCF | 43,622.19 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.17 |
| Free cash flow (t + 1) | 5,449.66 |
| Terminal Value | 3,205,682.72 |
| Present Value of Terminal Value | 2,613,407.99 |
Intrinsic Value
| Enterprise Value | 2,657,030.18 |
|---|---|
| Net Debt | 30,653.49 |
| Equity Value | 2,626,376.69 |
| Shares Outstanding | 655.08 |
| Equity Value Per Share | 4,009.23 |