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Discounted Cash Flow (DCF) Analysis Unlevered


AT&T Inc.

AT&T Inc. (T)

Communication 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 128,752.00132,447.18146,804.46163,789.73160,546.70170,757.47180,883.38191,609.77202,972.23215,008.48227,758.48
Revenue (%)
EBITDA 50,084.5331,946.2646,492.9750,217.9345,434.7160,670.1357,032.5360,414.5663,997.1467,792.1771,812.25
EBITDA (%)
EBIT 31,685.8713,668.5524,472.3024,371.9121,047.6732,239.0129,682.9631,443.1633,307.7435,282.8937,375.17
EBIT (%)
Depreciation 18,398.6618,277.7122,020.6725,846.0224,387.0428,431.1227,349.5728,971.4030,689.4032,509.2834,437.08
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 3,334.688,609.075,123.485,781.7850,491.945,208.1015,266.5616,171.8617,130.8618,146.7219,222.82
Total Cash (%)
Account Receivables 12,913.8314,529.4616,530.1816,788.4516,520.2626,467.4120,584.5321,805.1923,098.2424,467.9725,918.92
Account Receivables (%)
Inventories -----7,718.248,175.938,660.769,174.349,718.3810,294.68
Inventories (%)
Accounts Payable 21,102.4523,588.8430,373.8431,136.4334,469.3843,184.5636,375.6538,532.7240,817.7143,238.2145,802.23
Accounts Payable (%)
Capital Expenditure -20,947.95-21,204.79-19,216.70-21,521.97-20,646.31-20,764.11-25,178.97-26,672.08-28,253.73-29,929.18-31,703.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 38.26
Diluted Shares Outstanding 7,278.00
Cost of Debt
Tax Rate 20.26
After-tax Cost of Debt -0.96
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.27
Total Debt 166,250.00
Total Equity 278,456.28
Total Capital 444,706.28
Debt Weighting 37.38
Equity Weighting 62.62
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 128,752.00132,447.18146,804.46163,789.73160,546.70170,757.47180,883.38191,609.77202,972.23215,008.48227,758.48
EBITDA 50,084.5331,946.2646,492.9750,217.9345,434.7160,670.1357,032.5360,414.5663,997.1467,792.1771,812.25
EBIT 31,685.8713,668.5524,472.3024,371.9121,047.6732,239.0129,682.9631,443.1633,307.7435,282.8937,375.17
Tax Rate 33.62%35.97%34.42%33.30%-99.77%20.26%9.63%9.63%9.63%9.63%9.63%
EBIAT 21,033.318,751.8916,048.3016,255.4642,046.8025,708.9226,823.4628,414.1030,099.0531,883.9233,774.64
Depreciation 18,398.6618,277.7122,020.6725,846.0224,387.0428,431.1227,349.5728,971.4030,689.4032,509.2834,437.08
Accounts Receivable --1,615.63-2,000.73-258.27268.19-9,947.155,882.88-1,220.66-1,293.05-1,369.73-1,450.95
Inventories -------457.69-484.83-513.58-544.04-576.30
Accounts Payable -2,486.396,785.00762.593,332.958,715.19-6,808.912,157.082,284.992,420.492,564.03
Capital Expenditure -256.84-1,988.092,305.27-875.67117.804,414.861,493.111,581.651,675.451,774.80
UFCF 39,431.9728,157.2140,865.1544,911.0769,159.3253,025.8757,204.1659,330.1962,848.4766,575.3870,523.30
WACC
PV UFCF 53,945.8352,763.8252,709.0952,654.4152,599.79
SUM PV UFCF 407,060.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.04
Free cash flow (t + 1) 73,344.23
Terminal Value 3,595,305.48
Present Value of Terminal Value 2,681,558.04

Intrinsic Value

Enterprise Value 3,088,618.56
Net Debt 161,041.90
Equity Value 2,927,576.66
Shares Outstanding 7,278.00
Equity Value Per Share 402.25