Discounted Cash Flow (DCF) Analysis Unlevered
Discovery Communications Inc. (DISCK)
Consumer Cyclical
Operating Data
Year A/P | 2014 Actual | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected |
| Revenue | 6,265.00 | 6,394.06 | 6,497.00 | 6,873.18 | 10,553.08 | 12,215.19 | 14,139.08 | 16,365.99 | 18,943.63 | 21,927.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 3,960.73 | 3,927.87 | 4,119.10 | 2,578.13 | 6,437.38 | 7,000.53 | 8,103.11 | 9,379.35 | 10,856.60 | 12,566.51 |
| EBITDA (%) | ||||||||||
| EBIT | 2,074.97 | 1,888.81 | 2,023.82 | 338.16 | 1,751.81 | 2,816.82 | 3,260.47 | 3,774.00 | 4,368.40 | 5,056.42 |
| EBIT (%) | ||||||||||
| Depreciation | 1,885.77 | 2,039.07 | 2,095.28 | 2,239.97 | 4,685.57 | 4,183.70 | 4,842.64 | 5,605.35 | 6,488.19 | 7,510.08 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2014 Projected | 2015 Projected | 2016 Projected | 2017 Projected | 2018 Projected | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected |
| Total Cash | - | - | - | - | - | - | - | - | - | - |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 1,432.81 | 1,478.95 | 1,494.96 | 1,837.89 | 2,620.33 | 2,946.30 | 3,410.35 | 3,947.48 | 4,569.20 | 5,288.85 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 224.91 | 281.98 | 241.04 | 276.99 | 325.03 | 459.29 | 531.63 | 615.36 | 712.28 | 824.46 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -120.29 | -102.94 | -87.71 | -134.71 | -146.69 | -201.55 | -233.29 | -270.04 | -312.57 | -361.80 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 26.25 |
|---|---|
| Diluted Shares Outstanding | 688.00 |
| Cost of Debt | |
| Tax Rate | 39.92 |
| After-tax Cost of Debt | -1.95 |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.05 |
| Total Debt | 15,185.00 |
| Total Equity | 18,060.00 |
| Total Capital | 33,245.00 |
| Debt Weighting | 45.68 |
| Equity Weighting | 54.32 |
| Wacc |
Build Up Free Cash
Year A/P | 2014 Actual | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected |
| Revenue | 6,265.00 | 6,394.06 | 6,497.00 | 6,873.18 | 10,553.08 | 12,215.19 | 14,139.08 | 16,365.99 | 18,943.63 | 21,927.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 3,960.73 | 3,927.87 | 4,119.10 | 2,578.13 | 6,437.38 | 7,000.53 | 8,103.11 | 9,379.35 | 10,856.60 | 12,566.51 |
| EBIT | 2,074.97 | 1,888.81 | 2,023.82 | 338.16 | 1,751.81 | 2,816.82 | 3,260.47 | 3,774.00 | 4,368.40 | 5,056.42 |
| Tax Rate | 35.03% | 32.84% | 27.17% | -128.47% | 39.92% | 1.30% | 1.30% | 1.30% | 1.30% | 1.30% |
| EBIAT | 1,348.08 | 1,268.49 | 1,473.96 | 772.59 | 1,052.46 | 2,780.22 | 3,218.11 | 3,724.96 | 4,311.64 | 4,990.72 |
| Depreciation | 1,885.77 | 2,039.07 | 2,095.28 | 2,239.97 | 4,685.57 | 4,183.70 | 4,842.64 | 5,605.35 | 6,488.19 | 7,510.08 |
| Accounts Receivable | - | -46.14 | -16.01 | -342.93 | -782.44 | -325.97 | -464.04 | -537.13 | -621.73 | -719.65 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 57.06 | -40.94 | 35.95 | 48.05 | 134.26 | 72.34 | 83.73 | 96.92 | 112.18 |
| Capital Expenditure | - | -17.34 | -15.23 | 47.00 | 11.97 | 54.86 | 31.74 | 36.74 | 42.53 | 49.23 |
| UFCF | 3,233.84 | 3,301.14 | 3,497.05 | 2,752.58 | 5,015.60 | 6,827.07 | 7,700.78 | 8,913.65 | 10,317.56 | 11,942.57 |
| WACC | ||||||||||
| PV UFCF | 6,827.07 | 7,172.19 | 7,731.97 | 8,335.43 | 8,985.99 | |||||
| SUM PV UFCF | - |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.37 |
| Free cash flow (t + 1) | 12,420.27 |
| Terminal Value | 368,554.10 |
| Present Value of Terminal Value | 258,277.45 |
Intrinsic Value
| Enterprise Value | - |
|---|---|
| Net Debt | 15,185.00 |
| Equity Value | - |
| Shares Outstanding | 688.00 |
| Equity Value Per Share | - |