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Discounted Cash Flow (DCF) Analysis Unlevered


Williams Companies Inc. (The)

Williams Companies Inc. (The) (WMB)

Energy

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 6,860.007,637.247,360.017,499.118,030.808,686.119,117.819,570.9710,046.6410,545.9611,070.09
Revenue (%)
EBITDA 2,256.945,427.021,885.632,530.953,051.702,868.153,561.423,738.423,924.224,119.254,323.98
EBITDA (%)
EBIT 1,441.974,250.89147.94767.911,315.441,143.091,800.771,890.271,984.212,082.832,186.34
EBIT (%)
Depreciation 814.971,176.131,737.701,763.041,736.261,725.061,760.651,848.151,940.012,036.422,137.64
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 681.20239.81100.10170.23898.65167.64453.16475.68499.32524.13550.18
Total Cash (%)
Account Receivables 600.25972.221,040.70938.14975.74991.951,089.581,143.731,200.571,260.241,322.88
Account Receivables (%)
Inventories 194.14230.64127.33137.98113.23130.29186.92196.20205.96216.19226.94
Inventories (%)
Accounts Payable 959.71865.30744.10623.18978.15661.88965.581,013.571,063.941,116.821,172.32
Accounts Payable (%)
Capital Expenditure -3,572.00-4,030.93-3,077.22-1,802.79-2,014.12-2,851.65-3,473.89-3,646.54-3,827.77-4,018.01-4,217.71
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 22.57
Diluted Shares Outstanding 973.63
Cost of Debt
Tax Rate -811.76
After-tax Cost of Debt 40.64
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.24
Total Debt 22,367.00
Total Equity 21,974.74
Total Capital 44,341.74
Debt Weighting 50.44
Equity Weighting 49.56
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 6,860.007,637.247,360.017,499.118,030.808,686.119,117.819,570.9710,046.6410,545.9611,070.09
EBITDA 2,256.945,427.021,885.632,530.953,051.702,868.153,561.423,738.423,924.224,119.254,323.98
EBIT 1,441.974,250.89147.94767.911,315.441,143.091,800.771,890.271,984.212,082.832,186.34
Tax Rate 48.26%37.14%41.13%5.57%-987.00%-811.76%-277.78%-277.78%-277.78%-277.78%-277.78%
EBIAT 746.152,672.1387.08725.1514,298.8810,422.316,802.907,141.017,495.927,868.468,259.53
Depreciation 814.971,176.131,737.701,763.041,736.261,725.061,760.651,848.151,940.012,036.422,137.64
Accounts Receivable --371.97-68.48102.57-37.60-16.21-97.62-54.15-56.84-59.67-62.63
Inventories --36.51103.32-10.6624.75-17.06-56.62-9.29-9.75-10.24-10.74
Accounts Payable --94.41-121.20-120.92354.98-316.27303.6947.9950.3752.8855.51
Capital Expenditure -458.93-953.72-1,274.43211.34837.53622.24172.65181.23190.24199.70
UFCF 1,561.113,804.31784.701,184.7516,588.6012,635.369,335.249,146.369,600.9410,078.1010,578.98
WACC
PV UFCF 7,123.965,326.484,266.803,417.932,737.94
SUM PV UFCF 15,463.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 31.04
Free cash flow (t + 1) 11,002.14
Terminal Value 40,688.40
Present Value of Terminal Value 10,530.55

Intrinsic Value

Enterprise Value 25,994.26
Net Debt 22,199.36
Equity Value 3,794.90
Shares Outstanding 973.63
Equity Value Per Share 3.90