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Discounted Cash Flow (DCF) Analysis Unlevered


Charles Schwab Corporation (The)

Charles Schwab Corporation (The) (SCHW)

Financial Services

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 5,435.006,057.856,380.137,478.158,617.8210,131.9711,485.6013,020.0814,759.5616,731.4418,966.76
Revenue (%)
EBITDA 1,907.142,314.102,502.923,226.823,919.384,868.414,769.975,407.246,129.646,948.577,876.89
EBITDA (%)
EBIT 1,704.962,115.402,278.982,992.763,650.514,562.434,390.954,977.585,642.586,396.437,250.99
EBIT (%)
Depreciation 202.18198.70223.94234.07268.88305.99379.02429.66487.07552.14625.90
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 --51,707.1155,624.7145,034.1455,603.2475,392.6385,465.0996,883.22109,826.82124,499.68
Total Cash (%)
Account Receivables 14,459.8216,138.1217,894.9817,883.2521,224.8322,204.2129,049.3832,930.3837,329.8842,317.1547,970.72
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 36,799.8436,308.9435,772.7438,300.8332,529.6834,557.1158,727.0266,572.9575,467.1085,549.5196,978.92
Accounts Payable (%)
Capital Expenditure -248.92-399.82-266.05-346.24-399.87-570.43-578.87-656.21-743.88-843.26-955.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 36.37
Diluted Shares Outstanding 1,361.00
Cost of Debt
Tax Rate 23.13
After-tax Cost of Debt -1.11
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.04
Total Debt 6,826.00
Total Equity 49,499.57
Total Capital 56,325.57
Debt Weighting 12.12
Equity Weighting 87.88
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 5,435.006,057.856,380.137,478.158,617.8210,131.9711,485.6013,020.0814,759.5616,731.4418,966.76
EBITDA 1,907.142,314.102,502.923,226.823,919.384,868.414,769.975,407.246,129.646,948.577,876.89
EBIT 1,704.962,115.402,278.982,992.763,650.514,562.434,390.954,977.585,642.586,396.437,250.99
Tax Rate 37.18%37.54%36.51%36.89%35.51%23.13%34.46%34.46%34.46%34.46%34.46%
EBIAT 1,070.971,321.251,446.991,888.852,354.333,507.332,877.883,262.373,698.224,192.304,752.39
Depreciation 202.18198.70223.94234.07268.88305.99379.02429.66487.07552.14625.90
Accounts Receivable --1,678.30-1,756.8711.74-3,341.58-979.39-6,845.17-3,881.00-4,399.50-4,987.27-5,653.57
Inventories -----------
Accounts Payable --490.90-536.202,528.09-5,771.152,027.4324,169.927,845.938,894.1510,082.4011,429.41
Capital Expenditure -150.90-133.7780.1953.63170.568.4477.3487.6799.38112.66
UFCF 1,273.16-498.35-755.904,742.93-6,435.905,031.9220,590.107,734.308,767.609,938.9611,266.80
WACC
PV UFCF 18,395.516,173.456,252.326,332.206,413.10
SUM PV UFCF 24,273.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.93
Free cash flow (t + 1) 11,717.47
Terminal Value 147,761.32
Present Value of Terminal Value 84,106.25

Intrinsic Value

Enterprise Value 108,379.35
Net Debt -48,777.24
Equity Value 157,156.59
Shares Outstanding 1,361.00
Equity Value Per Share 115.47