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Discounted Cash Flow (DCF) Analysis Unlevered


General Electric Company

General Electric Company (GE)

Industrials

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 113,245.00117,185.93117,385.14119,462.86118,232.39121,602.01123,365.24125,154.04126,968.77128,809.82130,677.56
Revenue (%)
EBITDA 22,343.2423,683.288,674.7618,457.011,205.97-8,487.8211,682.6911,852.0912,023.9412,198.2912,375.17
EBITDA (%)
EBIT 17,145.2918,726.313,826.7611,384.81-6,219.02-16,708.125,119.665,193.895,269.205,345.615,423.12
EBIT (%)
Depreciation 5,197.954,956.964,848.017,072.207,424.998,220.306,563.036,658.196,754.746,852.686,952.05
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 --102,453.7592,440.3682,668.0964,959.8088,822.9890,110.9191,417.5292,743.0794,087.85
Total Cash (%)
Account Receivables 272,444.8242,948.6445,850.6442,265.9640,849.2929,488.4984,394.1685,617.8886,859.3488,118.8089,396.52
Account Receivables (%)
Inventories 17,326.4917,683.3622,514.4722,351.5019,413.7613,801.8319,750.7820,037.1620,327.7020,622.4520,921.48
Inventories (%)
Accounts Payable 16,465.8212,070.1513,675.3714,431.1115,169.2214,251.7615,038.2215,256.2815,477.4915,701.9215,929.59
Accounts Payable (%)
Capital Expenditure -4,042.85-4,206.97-5,071.04-3,524.15-2,175.48-3,538.62-3,947.69-4,004.93-4,063.00-4,121.91-4,181.68
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 10.8
Diluted Shares Outstanding 8,698.11
Cost of Debt
Tax Rate -2.68
After-tax Cost of Debt 0.18
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.23
Total Debt 97,109.00
Total Equity 93,939.64
Total Capital 191,048.64
Debt Weighting 50.83
Equity Weighting 49.17
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 113,245.00117,185.93117,385.14119,462.86118,232.39121,602.01123,365.24125,154.04126,968.77128,809.82130,677.56
EBITDA 22,343.2423,683.288,674.7618,457.011,205.97-8,487.8211,682.6911,852.0912,023.9412,198.2912,375.17
EBIT 17,145.2918,726.313,826.7611,384.81-6,219.02-16,708.125,119.665,193.895,269.205,345.615,423.12
Tax Rate 8.54%4.83%1,806.41%-17.79%23.53%-2.68%303.81%303.81%303.81%303.81%303.81%
EBIAT 15,681.2917,821.94-65,300.0113,410.72-4,755.49-17,155.52-10,434.16-10,585.46-10,738.95-10,894.66-11,052.64
Depreciation 5,197.954,956.964,848.017,072.207,424.998,220.306,563.036,658.196,754.746,852.686,952.05
Accounts Receivable -229,496.18-2,901.993,584.681,416.6711,360.80-54,905.67-1,223.72-1,241.46-1,259.46-1,277.72
Inventories --356.87-4,831.11162.972,937.745,611.93-5,948.95-286.39-290.54-294.75-299.03
Accounts Payable --4,395.671,605.22755.74738.10-917.46786.47218.05221.22224.42227.68
Capital Expenditure -164.13864.06-1,546.88-1,348.681,363.14409.0757.2458.0758.9159.77
UFCF 20,879.24247,686.66-65,715.8323,439.436,413.348,483.19-63,530.22-5,162.07-5,236.92-5,312.86-5,389.89
WACC
PV UFCF -59,021.01-4,455.30-4,199.09-3,957.61-3,730.02
SUM PV UFCF 159,379.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.64
Free cash flow (t + 1) -5,605.49
Terminal Value -153,996.93
Present Value of Terminal Value -106,572.13

Intrinsic Value

Enterprise Value 52,806.95
Net Debt 32,149.20
Equity Value 20,657.75
Shares Outstanding 8,698.11
Equity Value Per Share 2.37