Discounted Cash Flow (DCF) Analysis Levered

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

$42.07

-0.58 (-1.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 179.11 | 42.07 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 15,12416,08815,47215,63316,03416,280.5516,530.8916,785.0917,043.1917,305.26
Revenue (%)
Operating Cash Flow 5,996965,0382,83815,0686,021.646,114.236,208.256,303.716,400.65
Operating Cash Flow (%)
Capital Expenditure -1,108-1,210-1,222-1,215-1,346-1,267.02-1,286.50-1,306.28-1,326.37-1,346.77
Capital Expenditure (%)
Free Cash Flow 4,888-1,1143,8161,62313,7224,754.624,827.734,901.974,977.345,053.88

Weighted Average Cost Of Capital

Share price $ 42.07
Beta 1.082
Diluted Shares Outstanding 814.79
Cost of Debt
Tax Rate 22.69
After-tax Cost of Debt 9.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.791
Total Debt 30,855
Total Equity 34,278.43
Total Capital 65,133.43
Debt Weighting 47.37
Equity Weighting 52.63
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 15,12416,08815,47215,63316,03416,280.5516,530.8916,785.0917,043.1917,305.26
Operating Cash Flow 5,996965,0382,83815,0686,021.646,114.236,208.256,303.716,400.65
Capital Expenditure -1,108-1,210-1,222-1,215-1,346-1,267.02-1,286.50-1,306.28-1,326.37-1,346.77
Free Cash Flow 4,888-1,1143,8161,62313,7224,754.624,827.734,901.974,977.345,053.88
WACC
PV LFCF 4,344.504,030.803,739.753,469.713,219.17
SUM PV LFCF 18,803.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.44
Free cash flow (t + 1) 5,154.96
Terminal Value 69,287.05
Present Value of Terminal Value 44,133.83

Intrinsic Value

Enterprise Value 62,937.76
Net Debt -82,999
Equity Value 145,936.76
Shares Outstanding 814.79
Equity Value Per Share 179.11