Discounted Cash Flow (DCF) Analysis Levered

The Bank of New York Mellon Corpora... (BK)

$44.68

+0.91 (+2.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 195.43 | 44.68 | undervalue

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 14,90415,36616,46215,50615,63315,837.9616,045.6016,255.9616,469.0916,685.01
Revenue (%)
Operating Cash Flow 4,6415,996965,0382,8383,845.083,895.493,946.573,998.314,050.73
Operating Cash Flow (%)
Capital Expenditure -1,197-1,108-1,210-1,222-1,215-1,211.45-1,227.34-1,243.43-1,259.73-1,276.24
Capital Expenditure (%)
Free Cash Flow 3,4444,888-1,1143,8161,6232,633.632,668.162,703.142,738.582,774.48

Weighted Average Cost Of Capital

Share price $ 44.68
Beta 1.142
Diluted Shares Outstanding 892.51
Cost of Debt
Tax Rate 19.13
After-tax Cost of Debt 0.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.247
Total Debt 26,680
Total Equity 39,877.53
Total Capital 66,557.53
Debt Weighting 40.09
Equity Weighting 59.91
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 14,90415,36616,46215,50615,63315,837.9616,045.6016,255.9616,469.0916,685.01
Operating Cash Flow 4,6415,996965,0382,8383,845.083,895.493,946.573,998.314,050.73
Capital Expenditure -1,197-1,108-1,210-1,222-1,215-1,211.45-1,227.34-1,243.43-1,259.73-1,276.24
Free Cash Flow 3,4444,888-1,1143,8161,6232,633.632,668.162,703.142,738.582,774.48
WACC
PV LFCF 2,502.972,409.992,320.462,234.252,151.25
SUM PV LFCF 11,618.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.22
Free cash flow (t + 1) 2,829.97
Terminal Value 87,887.34
Present Value of Terminal Value 68,145.13

Intrinsic Value

Enterprise Value 79,764.05
Net Debt -94,656
Equity Value 174,420.05
Shares Outstanding 892.51
Equity Value Per Share 195.43