Discounted Cash Flow (DCF) Analysis Levered

Citigroup Inc. (C-PJ)

$25.69

+0.06 (+0.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 32.93 | 25.69 | 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 72,69874,03675,06775,49471,88771,711.6071,536.6371,362.0871,187.9671,014.27
Revenue (%)
Operating Cash Flow -8,58736,952-12,837-20,62161,24911,313.9811,286.3711,258.8311,231.3611,203.96
Operating Cash Flow (%)
Capital Expenditure -3,361-3,774-5,336-3,446-4,119-3,890.14-3,880.65-3,871.18-3,861.73-3,852.31
Capital Expenditure (%)
Free Cash Flow -11,94833,178-18,173-24,06757,1307,423.847,405.737,387.667,369.637,351.65

Weighted Average Cost Of Capital

Share price $ 25.69
Beta 1.596
Diluted Shares Outstanding 5,676.36
Cost of Debt
Tax Rate 20.08
After-tax Cost of Debt 2.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.186
Total Debt 282,347
Total Equity 145,825.69
Total Capital 428,172.69
Debt Weighting 65.94
Equity Weighting 34.06
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 72,69874,03675,06775,49471,88771,711.6071,536.6371,362.0871,187.9671,014.27
Operating Cash Flow -8,58736,952-12,837-20,62161,24911,313.9811,286.3711,258.8311,231.3611,203.96
Capital Expenditure -3,361-3,774-5,336-3,446-4,119-3,890.14-3,880.65-3,871.18-3,861.73-3,852.31
Free Cash Flow -11,94833,178-18,173-24,06757,1307,423.847,405.737,387.667,369.637,351.65
WACC
PV LFCF 7,050.186,678.996,327.355,994.215,678.62
SUM PV LFCF 31,729.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.30
Free cash flow (t + 1) 7,498.68
Terminal Value 227,232.79
Present Value of Terminal Value 175,521.02

Intrinsic Value

Enterprise Value 207,250.37
Net Debt 20,314
Equity Value 186,936.37
Shares Outstanding 5,676.36
Equity Value Per Share 32.93