Loading...

Discounted Cash Flow (DCF) Analysis Unlevered


Huntington Ingalls Industries Inc.

Huntington Ingalls Industries Inc. (HII)

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 6,820.006,957.087,020.397,068.137,441.338,176.538,483.158,801.279,131.329,473.749,829.01
Revenue (%)
EBITDA 746.79859.90956.881,048.911,076.021,157.801,136.741,179.371,223.601,269.481,317.09
EBITDA (%)
EBIT 511.50654.66768.73858.07864.68950.93894.12927.65962.44998.531,035.98
EBIT (%)
Depreciation 235.29205.23188.15190.84211.33206.87242.62251.72261.16270.95281.11
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 1,042.78989.99893.70720.24700.97240.39916.18950.54986.181,023.161,061.53
Total Cash (%)
Account Receivables 1,123.251,038.001,074.121,164.121,187.64251.841,162.191,205.771,250.991,297.901,346.57
Account Receivables (%)
Inventories 310.99338.81285.03209.92183.06128.37289.28300.12311.38323.05335.17
Inventories (%)
Accounts Payable 336.91269.24317.32315.95375.04561.73419.92435.66452.00468.95486.54
Accounts Payable (%)
Capital Expenditure 139.13164.88188.15284.85381.74462.79309.63321.25333.29345.79358.76
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 236.02
Diluted Shares Outstanding 43.80
Cost of Debt
Tax Rate 13.90
After-tax Cost of Debt -0.65
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.19
Total Debt 1,283.00
Total Equity 10,337.68
Total Capital 11,620.68
Debt Weighting 11.04
Equity Weighting 88.96
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 6,820.006,957.087,020.397,068.137,441.338,176.538,483.158,801.279,131.329,473.749,829.01
EBITDA 746.79859.90956.881,048.911,076.021,157.801,136.741,179.371,223.601,269.481,317.09
EBIT 511.50654.66768.73858.07864.68950.93894.12927.65962.44998.531,035.98
Tax Rate 33.76%33.33%36.08%26.91%37.95%13.90%30.32%30.32%30.32%30.32%30.32%
EBIAT 338.84436.44491.41627.14536.51818.72623.00646.37670.60695.75721.84
Depreciation 235.29205.23188.15190.84211.33206.87242.62251.72261.16270.95281.11
Accounts Receivable -85.26-36.12-90.00-23.51935.80-910.35-43.58-45.22-46.91-48.67
Inventories --27.8253.7875.1026.8754.69-160.90-10.85-11.25-11.68-12.11
Accounts Payable --67.6748.08-1.3859.10186.68-141.8115.7516.3416.9517.59
Capital Expenditure --25.75-23.26-96.70-96.89-81.05153.16-11.61-12.05-12.50-12.97
UFCF 574.13605.69722.03705.00713.392,121.70-194.29847.79879.58912.56946.78
WACC
PV UFCF -174.54684.13637.61594.25553.84
SUM PV UFCF 4,725.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.32
Free cash flow (t + 1) 984.66
Terminal Value 13,451.58
Present Value of Terminal Value 7,868.78

Intrinsic Value

Enterprise Value 12,594.17
Net Debt 1,042.61
Equity Value 11,551.56
Shares Outstanding 43.80
Equity Value Per Share 263.73