Time Warner Cable Inc.
NYSE-TWC
BUILD UP FREE CASH | 2013-12-31 (A) | 2014-12-31 (A) | 2015-12-31 (A) | 2016-12-31 (E) | 2017-12-31 (E) | 2018-12-31 (E) | 2019-12-31 (E) | 2020-12-31 (E) |
|---|---|---|---|---|---|---|---|---|
Revenue | 22,120 | 22,812 | 23,697 | 25,303 | 26,403 | 29,211 | 29,211 | 29,211 |
Revenue % Chg. | 3.4% | 3.1% | 3.9% | |||||
EBIT | 4,689 | 4,858 | 4,442 | 4,797 | 5,121 | 6,353 | 6,353 | 6,353 |
EBIT Margin | 21.2% | 21.3% | 18.7% | |||||
Tax Rate | 35.7% | 37.5% | 38.3% | |||||
NOPAT | 3,014.9 | 3,037.7 | 2,741.3 | 2,964.5 | 3,226.2 | 3,938.9 | 3,938.9 | 3,938.9 |
NOPAT Margin | 13.6% | 13.3% | 11.6% | 11.7% | 12.2% | 13.5% | 13.5% | 13.5% |
D&A | 3,011 | 3,054 | 3,335 | 3,895 | 4,116 | 3,724 | 3,724 | 3,724 |
D&A / Revenue | 13.6% | 13.4% | 14.1% | |||||
Capex | -3,198 | -4,097 | -4,446 | -4,700 | -3,632 | -3,619 | -3,619 | -3,619 |
Capex / Revenue | -14.5% | -18% | -18.8% | |||||
Chg. NWC | 120 | 151 | 457 | 264.2 | 275.7 | 305.1 | 305.1 | 305.1 |
Chg. NWC / Revenue | 0.5% | 0.7% | 1.9% | |||||
Unlevered FCF (UFCF) | 2,947.9 | 2,145.7 | 2,087.3 | 2,423.8 | 3,986 | 4,348.9 | 4,348.9 | 4,348.9 |
UFCF % Chg. | 3.1% | -27.2% | -2.7% | 16.1% | 64.5% | 9.1% | — | — |
PV of UFCF | — | — | — | 2,259.9 | 3,465.2 | 3,525.2 | 3,286.8 | 3,064.6 |
Sum of PV of UFCF | — | — | — | 2,259.9 | 5,725.2 | 9,250.3 | 12,537.2 | 15,601.8 |
| Cost of Debt | |
| Tax Rate | |
| After Tax Cost of Debt | 3.8% |
| Risk Free Rate | |
| Market Risk Premium | |
| Beta | 1 |
| Cost of Equity | 8.6% |
| Total Debt | 22,589 |
| Market Cap | 59,787 |
| Total Capital | 82,376 |
| Debt Weighting | 27.4% |
| Equity Weighting | 72.6% |
| WACC | 7.3% |
| Exit Multiple EV/FCF | |
| Terminal Value | 81,115 |
| PV of Terminal Value | 53,296.6 |
| Cumulative PV of UFCF | 15,601.8 |
| Net Debt | 21,324 |
| Equity Value | 47,574.4 |
| Shares Outstanding | 284.7 |
| Implied Share Price | 167.1 |
| Current Share Price | 209.6 |
| Implied Upside / (Downside) | -20.3% |