Discounted Cash Flow (DCF) Analysis Levered
Franklin Resources, Inc. (BEN)
$25.8
+0.69 (+2.75%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 6,392.20 | 6,319.10 | 5,774.50 | 5,566.50 | 8,425.50 | 9,225.86 | 10,102.24 | 11,061.88 | 12,112.67 | 13,263.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,135.40 | 2,229.70 | 201.60 | 1,021.40 | 1,245.40 | 1,654.55 | 1,811.71 | 1,983.81 | 2,172.26 | 2,378.61 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -74.90 | -106.50 | -233.70 | -103.70 | -79.30 | -179.14 | -196.15 | -214.78 | -235.19 | -257.53 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,060.50 | 2,123.20 | -32.10 | 917.70 | 1,166.10 | 1,475.41 | 1,615.56 | 1,769.03 | 1,937.07 | 2,121.08 |
Weighted Average Cost Of Capital
| Share price | $ 25.8 |
|---|---|
| Beta | 1.175 |
| Diluted Shares Outstanding | 490.60 |
| Cost of Debt | |
| Tax Rate | 25.08 |
| After-tax Cost of Debt | 0.85% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.331 |
| Total Debt | 7,588.80 |
| Total Equity | 12,657.48 |
| Total Capital | 20,246.28 |
| Debt Weighting | 37.48 |
| Equity Weighting | 62.52 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 6,392.20 | 6,319.10 | 5,774.50 | 5,566.50 | 8,425.50 | 9,225.86 | 10,102.24 | 11,061.88 | 12,112.67 | 13,263.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,135.40 | 2,229.70 | 201.60 | 1,021.40 | 1,245.40 | 1,654.55 | 1,811.71 | 1,983.81 | 2,172.26 | 2,378.61 |
| Capital Expenditure | -74.90 | -106.50 | -233.70 | -103.70 | -79.30 | -179.14 | -196.15 | -214.78 | -235.19 | -257.53 |
| Free Cash Flow | 1,060.50 | 2,123.20 | -32.10 | 917.70 | 1,166.10 | 1,475.41 | 1,615.56 | 1,769.03 | 1,937.07 | 2,121.08 |
| WACC | ||||||||||
| PV LFCF | 1,398.10 | 1,450.68 | 1,505.24 | 1,561.86 | 1,620.61 | |||||
| SUM PV LFCF | 7,536.49 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.53 |
| Free cash flow (t + 1) | 2,163.50 |
| Terminal Value | 61,288.98 |
| Present Value of Terminal Value | 46,827.69 |
Intrinsic Value
| Enterprise Value | 54,364.17 |
|---|---|
| Net Debt | 2,941.60 |
| Equity Value | 51,422.57 |
| Shares Outstanding | 490.60 |
| Equity Value Per Share | 104.82 |