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 | 6,231.09 | 6,263.49 | 6,296.06 | 6,328.80 | 6,361.71 |
| EBITDA (%) | |||||||||||
| EBIT | 3,466.30 | 2,954.90 | 3,706.95 | 3,788.56 | 4,173.22 | 4,520.17 | 4,158.09 | 4,179.71 | 4,201.45 | 4,223.30 | 4,245.26 |
| EBIT (%) | |||||||||||
| Depreciation | 1,389.41 | 1,559.53 | 1,669.47 | 1,848.51 | 2,202.39 | 2,280.13 | 2,073.00 | 2,083.78 | 2,094.62 | 2,105.51 | 2,116.46 |
| 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 | 268.64 | 522.62 | 525.33 | 528.07 | 530.81 | 533.57 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||||
| Account Receivables | 1,835.49 | 1,632.91 | 1,369.22 | 1,706.49 | 1,785.82 | 2,079.65 | 1,858.04 | 1,867.70 | 1,877.42 | 1,887.18 | 1,896.99 |
| Account Receivables (%) | |||||||||||
| Inventories | 1,175.55 | 1,410.29 | 1,348.20 | 1,524.58 | 1,477.49 | 1,418.07 | 1,563.82 | 1,571.95 | 1,580.12 | 1,588.34 | 1,596.60 |
| Inventories (%) | |||||||||||
| Accounts Payable | 1,167.68 | 951.39 | 725.50 | 999.95 | 874.66 | 914.19 | 972.68 | 977.74 | 982.83 | 987.94 | 993.07 |
| Accounts Payable (%) | |||||||||||
| Capital Expenditure | -4,103.94 | -5,550.39 | -5,993.28 | -6,125.30 | -5,908.70 | -4,405.23 | -6,127.64 | -6,159.51 | -6,191.54 | -6,223.73 | -6,256.10 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 76.91 |
|---|---|
| Diluted Shares Outstanding | - |
| 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 | - |
| Total Capital | 31,144.00 |
| Debt Weighting | 100.00 |
| Equity Weighting | 0.00 |
| 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 | 6,231.09 | 6,263.49 | 6,296.06 | 6,328.80 | 6,361.71 |
| EBIT | 3,466.30 | 2,954.90 | 3,706.95 | 3,788.56 | 4,173.22 | 4,520.17 | 4,158.09 | 4,179.71 | 4,201.45 | 4,223.30 | 4,245.26 |
| 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 | 3,228.69 | 3,245.48 | 3,262.35 | 3,279.32 | 3,296.37 |
| Depreciation | 1,389.41 | 1,559.53 | 1,669.47 | 1,848.51 | 2,202.39 | 2,280.13 | 2,073.00 | 2,083.78 | 2,094.62 | 2,105.51 | 2,116.46 |
| Accounts Receivable | - | 202.58 | 263.68 | -337.27 | -79.33 | -293.83 | 221.61 | -9.66 | -9.71 | -9.76 | -9.81 |
| Inventories | - | -234.74 | 62.10 | -176.38 | 47.09 | 59.42 | -145.75 | -8.13 | -8.17 | -8.22 | -8.26 |
| Accounts Payable | - | -216.29 | -225.89 | 274.45 | -125.29 | 39.53 | 58.49 | 5.06 | 5.08 | 5.11 | 5.14 |
| Capital Expenditure | - | 1,446.45 | 442.89 | 132.02 | -216.60 | -1,503.48 | 1,722.42 | 31.86 | 32.03 | 32.20 | 32.36 |
| UFCF | 3,661.45 | 4,954.42 | 4,722.78 | 4,636.62 | 6,043.64 | 4,235.84 | 7,158.46 | 5,348.39 | 5,376.20 | 5,404.15 | 5,432.26 |
| WACC | |||||||||||
| PV UFCF | 6,880.48 | 4,941.08 | 4,773.91 | 4,612.39 | 4,456.34 | ||||||
| SUM PV UFCF | 44,781.27 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.04 |
| Free cash flow (t + 1) | 5,649.55 |
| Terminal Value | 14,123,863.13 |
| Present Value of Terminal Value | 11,586,487.10 |
Intrinsic Value
| Enterprise Value | 11,631,268.37 |
|---|---|
| Net Debt | 30,875.36 |
| Equity Value | 11,600,393.01 |
| Shares Outstanding | - |
| Equity Value Per Share | Infinity |
Results Unlevered DCF
| Wacc / Long-term Growth | -4 (%) | -3 (%) | -2 (%) | -1 (%) | 0 (%) | 1 (%) | 2 (%) | 3 (%) | 4 (%) |
|---|---|---|---|---|---|---|---|---|---|
| 6.04 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | -Infinity Sell | -Infinity Sell |
| 5.54 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | -Infinity Sell | -Infinity Sell |
| 5.04 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | -Infinity Sell |
| 4.54 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | -Infinity Sell |
| 4.04 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy |
| 3.54 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy |
| 3.04 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy |
| 2.54 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy |
| 2.04 (%) | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy | Infinity Buy |