Discounted Cash Flow (DCF) Analysis Unlevered

Huntington Ingalls Industries Inc

Huntington Ingalls Industries Inc (HII)

$170.57
-0.9 (-0.52%)

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 738.00897.001,024.001,044.001,071.001,215.001,009.001,245.511,302.791,362.711,425.391,490.95
EBITDA (%)
EBIT 512.00703.00844.00858.00866.001,012.00782.00991.701,037.311,085.021,134.931,187.13
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 $ 170.57
Beta 0.929
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 9.854
Total Debt 1,450.00
Total Equity 7,061.60
Total Capital 8,511.60
Debt Weighting 17.04
Equity Weighting 82.96
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 738.00897.001,024.001,044.001,071.001,215.001,009.001,245.511,302.791,362.711,425.391,490.95
EBIT 512.00703.00844.00858.00866.001,012.00782.00991.701,037.311,085.021,134.931,187.13
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 339.17468.67539.52627.08537.32871.30628.58706.16738.63772.61808.14845.31
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 426.17486.67597.52512.08422.32786.3052.58386.23556.77582.38609.17637.19
WACC
PV UFCF 354.79469.83451.44433.77416.80
SUM PV UFCF 2,126.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.86
Free cash flow (t + 1) 662.67
Terminal Value 13,635.23
Present Value of Terminal Value 8,919.10

Intrinsic Value

Enterprise Value 11,045.74
Net Debt 1,211.00
Equity Value 9,834.74
Shares Outstanding 41.40
Equity Value Per Share 237.55