Discounted Cash Flow (DCF) Analysis Levered

Colgate-Palmolive Company (CL)

$73.59

-0.70 (-0.94%)
All numbers are in Millions, Currency in USD
Stock DCF: 113.08 | 73.59 | 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 15,54415,69316,47117,42117,96718,632.5919,322.8420,038.6520,780.9921,550.82
Revenue (%)
Operating Cash Flow 3,0563,1333,7193,3252,5563,559.423,691.283,828.023,969.834,116.89
Operating Cash Flow (%)
Capital Expenditure -436-335-410-567-696-542.48-562.58-583.42-605.03-627.45
Capital Expenditure (%)
Free Cash Flow 2,6202,7983,3092,7581,8603,016.943,128.703,244.603,364.803,489.45

Weighted Average Cost Of Capital

Share price $ 73.59
Beta 0.509
Diluted Shares Outstanding 838.80
Cost of Debt
Tax Rate 32.89
After-tax Cost of Debt -1.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.016
Total Debt 8,766
Total Equity 61,727.29
Total Capital 70,493.29
Debt Weighting 12.44
Equity Weighting 87.56
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 15,54415,69316,47117,42117,96718,632.5919,322.8420,038.6520,780.9921,550.82
Operating Cash Flow 3,0563,1333,7193,3252,5563,559.423,691.283,828.023,969.834,116.89
Capital Expenditure -436-335-410-567-696-542.48-562.58-583.42-605.03-627.45
Free Cash Flow 2,6202,7983,3092,7581,8603,016.943,128.703,244.603,364.803,489.45
WACC
PV LFCF 2,235.912,205.802,176.102,146.802,117.89
SUM PV LFCF 13,968.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.12
Free cash flow (t + 1) 3,559.24
Terminal Value 114,078.17
Present Value of Terminal Value 88,874.21

Intrinsic Value

Enterprise Value 102,842.90
Net Debt 7,991
Equity Value 94,851.90
Shares Outstanding 838.80
Equity Value Per Share 113.08