Discounted Cash Flow (DCF) Analysis Levered

Broadridge Financial Solutions, Inc... (BR)

$143.33

-1.65 (-1.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 110.06 | 143.33 | overvalue

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 4,329.904,362.204,5294,993.705,709.106,125.246,571.717,050.737,564.678,116.06
Revenue (%)
Operating Cash Flow 693.60616.90598.20640.10443.50783.49840.59901.87967.601,038.13
Operating Cash Flow (%)
Capital Expenditure -137.90-72.60-98.70-100.70-73.10-126.49-135.71-145.60-156.22-167.60
Capital Expenditure (%)
Free Cash Flow 555.70544.30499.50539.40370.40656.99704.88756.26811.39870.53

Weighted Average Cost Of Capital

Share price $ 143.33
Beta 0.920
Diluted Shares Outstanding 118.50
Cost of Debt
Tax Rate 19.80
After-tax Cost of Debt 1.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.857
Total Debt 4,066.20
Total Equity 16,984.61
Total Capital 21,050.81
Debt Weighting 19.32
Equity Weighting 80.68
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 4,329.904,362.204,5294,993.705,709.106,125.246,571.717,050.737,564.678,116.06
Operating Cash Flow 693.60616.90598.20640.10443.50783.49840.59901.87967.601,038.13
Capital Expenditure -137.90-72.60-98.70-100.70-73.10-126.49-135.71-145.60-156.22-167.60
Free Cash Flow 555.70544.30499.50539.40370.40656.99704.88756.26811.39870.53
WACC
PV LFCF 615.91619.49623.08626.70630.34
SUM PV LFCF 3,115.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.67
Free cash flow (t + 1) 887.94
Terminal Value 19,013.72
Present Value of Terminal Value 13,767.52

Intrinsic Value

Enterprise Value 16,883.04
Net Debt 3,841.50
Equity Value 13,041.54
Shares Outstanding 118.50
Equity Value Per Share 110.06