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Discounted Cash Flow (DCF) Analysis Unlevered


Halliburton Company

Halliburton Company (HAL)

Energy

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 29,402.0032,871.4423,634.5615,887.1520,619.9423,995.4223,856.2523,717.8823,580.3223,443.5523,307.58
Revenue (%)
EBITDA 5,004.227,284.311,337.72-5,479.482,816.683,973.641,612.681,603.331,594.031,584.781,575.59
EBITDA (%)
EBIT 3,104.855,157.53-496.33-6,982.401,259.882,368.35-152.68-151.79-150.91-150.04-149.17
EBIT (%)
Depreciation 1,899.372,126.781,834.041,502.921,556.811,605.291,765.361,755.121,744.941,734.821,724.76
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 2,355.102,291.1410,077.784,008.332,336.242,008.424,077.034,053.394,029.884,006.503,983.26
Total Cash (%)
Account Receivables 6,180.307,563.725,317.783,922.545,035.395,233.405,465.475,433.775,402.255,370.925,339.77
Account Receivables (%)
Inventories 3,304.783,569.842,992.142,275.042,396.043,028.222,915.232,898.322,881.512,864.802,848.19
Inventories (%)
Accounts Payable 2,363.922,813.792,018.391,763.472,554.813,018.622,433.342,419.222,405.192,391.242,377.37
Accounts Payable (%)
Capital Expenditure -2,693.22-2,945.28-2,016.03-576.70-1,214.51-1,806.86-1,736.73-1,726.66-1,716.65-1,706.69-1,696.79
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.83
Diluted Shares Outstanding 875.00
Cost of Debt
Tax Rate 8.66
After-tax Cost of Debt -0.38
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.04
Total Debt 10,312.00
Total Equity 18,226.25
Total Capital 28,538.25
Debt Weighting 36.13
Equity Weighting 63.87
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 29,402.0032,871.4423,634.5615,887.1520,619.9423,995.4223,856.2523,717.8823,580.3223,443.5523,307.58
EBITDA 5,004.227,284.311,337.72-5,479.482,816.683,973.641,612.681,603.331,594.031,584.781,575.59
EBIT 3,104.855,157.53-496.33-6,982.401,259.882,368.35-152.68-151.79-150.91-150.04-149.17
Tax Rate 23.37%26.70%28.99%24.38%169.31%8.66%46.90%46.90%46.90%46.90%46.90%
EBIAT 2,379.303,780.39-352.42-5,280.09-873.242,163.26-81.07-80.60-80.13-79.67-79.20
Depreciation 1,899.372,126.781,834.041,502.921,556.811,605.291,765.361,755.121,744.941,734.821,724.76
Accounts Receivable --1,383.422,245.941,395.24-1,112.85-198.01-232.0631.7031.5231.3331.15
Inventories --265.05577.70717.10-121.00-632.19112.9916.9116.8116.7116.62
Accounts Payable -449.87-795.40-254.92791.34463.81-585.29-14.11-14.03-13.95-13.87
Capital Expenditure -252.06-929.25-1,439.32637.81592.34-70.12-10.07-10.01-9.96-9.90
UFCF 4,278.674,960.632,580.61-3,359.08878.873,994.51909.811,698.951,689.091,679.301,669.56
WACC
PV UFCF 832.091,421.091,292.161,174.931,068.33
SUM PV UFCF 13,974.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.34
Free cash flow (t + 1) 1,736.34
Terminal Value 32,515.68
Present Value of Terminal Value 20,806.43

Intrinsic Value

Enterprise Value 34,780.66
Net Debt 8,303.58
Equity Value 26,477.07
Shares Outstanding 875.00
Equity Value Per Share 30.26