Discounted Cash Flow (DCF) Analysis Unlevered

Huntington Ingalls Industries Inc

Huntington Ingalls Industries Inc (HII)

$141.22
1.73 (+1.24%)

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 6,820.006,957.007,020.007,068.007,441.008,176.008,899.009,308.309,736.4210,184.2310,652.6411,142.59
Revenue (%)
EBITDA 738.00850.00949.001,044.001,071.001,232.00980.001,220.751,276.901,335.631,397.061,461.31
EBITDA (%)
EBIT 512.00656.00769.00858.00866.001,029.00753.00966.941,011.421,057.931,106.591,157.49
EBIT (%)
Depreciation 226.00194.00180.00186.00205.00203.00227.00253.81265.48277.69290.46303.82
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Total Cash 1,043.00990.00894.00720.00701.00240.0075.00872.91913.06955.05998.981,044.93
Total Cash (%)
Account Receivables 1,123.001,038.001,074.001,164.001,188.001,255.001,455.001,473.631,541.411,612.311,686.461,764.03
Account Receivables (%)
Inventories 311.00339.00285.00210.00183.00128.00136.00292.77306.24320.32335.06350.47
Inventories (%)
Accounts Payable 337.00269.00317.00316.00375.00562.00497.00469.31490.89513.47537.09561.79
Accounts Payable (%)
Capital Expenditure -139.00-165.00-188.00-285.00-382.00-463.00-530.00-370.64-387.68-405.51-424.17-443.67
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 141.22
Beta 0.928
Diluted Shares Outstanding 41.40
Cost of Debt
Tax Rate 19.62
After-tax Cost of Debt 4.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.843
Total Debt 1,286.00
Total Equity 5,846.51
Total Capital 7,132.51
Debt Weighting 18.03
Equity Weighting 81.97
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
Revenue 6,820.006,957.007,020.007,068.007,441.008,176.008,899.009,308.309,736.4210,184.2310,652.6411,142.59
EBITDA 738.00850.00949.001,044.001,071.001,232.00980.001,220.751,276.901,335.631,397.061,461.31
EBIT 512.00656.00769.00858.00866.001,029.00753.00966.941,011.421,057.931,106.591,157.49
Tax Rate 33.76%33.33%36.08%26.91%37.95%13.90%19.62%28.79%28.79%28.79%28.79%28.79%
EBIAT 339.17437.33491.58627.08537.32885.94605.27688.53720.19753.32787.97824.21
Depreciation 226.00194.00180.00186.00205.00203.00227.00253.81265.48277.69290.46303.82
Accounts Receivable -85.00-36.00-90.00-24.00-67.00-200.00-18.63-67.78-70.89-74.16-77.57
Inventories --28.0054.0075.0027.0055.00-8.00-156.77-13.47-14.08-14.73-15.41
Accounts Payable --68.0048.00-1.0059.00187.00-65.00-27.6921.5922.5823.6224.70
Capital Expenditure -139.00-165.00-188.00-285.00-382.00-463.00-530.00-370.64-387.68-405.51-424.17-443.67
UFCF 426.17455.33549.58512.08422.32800.9429.27368.60538.33563.09588.99616.08
WACC
PV UFCF 338.82454.85437.33420.49404.29
SUM PV UFCF 2,055.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.79
Free cash flow (t + 1) 640.72
Terminal Value 13,376.29
Present Value of Terminal Value 8,777.90

Intrinsic Value

Enterprise Value 10,833.68
Net Debt 1,211.00
Equity Value 9,622.68
Shares Outstanding 41.40
Equity Value Per Share 232.43