Discounted Cash Flow (DCF) Analysis Levered
Diageo plc (DEO)
$171.26
-3.23 (-1.85%)
All numbers are in Millions, Currency in USD
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 | 12,163 | 12,867 | 11,752 | 12,733 | 15,452 | 16,488.21 | 17,593.91 | 18,773.75 | 20,032.72 | 21,376.11 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,084 | 3,248 | 2,320 | 3,654 | 3,935 | 4,105.66 | 4,380.98 | 4,674.77 | 4,988.26 | 5,322.77 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -584 | -671 | -700 | -626 | -1,097 | -922.96 | -984.86 | -1,050.90 | -1,121.37 | -1,196.57 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,500 | 2,577 | 1,620 | 3,028 | 2,838 | 3,182.70 | 3,396.13 | 3,623.87 | 3,866.89 | 4,126.20 |
Weighted Average Cost Of Capital
| Share price | $ 171.26 |
|---|---|
| Beta | 0.410 |
| Diluted Shares Outstanding | 581.25 |
| Cost of Debt | |
| Tax Rate | 25.94 |
| After-tax Cost of Debt | 2.32% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.579 |
| Total Debt | 16,020 |
| Total Equity | 99,544.88 |
| Total Capital | 115,564.88 |
| Debt Weighting | 13.86 |
| Equity Weighting | 86.14 |
| 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 | 12,163 | 12,867 | 11,752 | 12,733 | 15,452 | 16,488.21 | 17,593.91 | 18,773.75 | 20,032.72 | 21,376.11 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,084 | 3,248 | 2,320 | 3,654 | 3,935 | 4,105.66 | 4,380.98 | 4,674.77 | 4,988.26 | 5,322.77 |
| Capital Expenditure | -584 | -671 | -700 | -626 | -1,097 | -922.96 | -984.86 | -1,050.90 | -1,121.37 | -1,196.57 |
| Free Cash Flow | 2,500 | 2,577 | 1,620 | 3,028 | 2,838 | 3,182.70 | 3,396.13 | 3,623.87 | 3,866.89 | 4,126.20 |
| WACC | ||||||||||
| PV LFCF | 3,027.39 | 3,072.77 | 3,118.84 | 3,165.59 | 3,213.05 | |||||
| SUM PV LFCF | 15,597.64 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.13 |
| Free cash flow (t + 1) | 4,208.72 |
| Terminal Value | 134,464 |
| Present Value of Terminal Value | 104,706.28 |
Intrinsic Value
| Enterprise Value | 120,303.91 |
|---|---|
| Net Debt | 13,735 |
| Equity Value | 106,568.91 |
| Shares Outstanding | 581.25 |
| Equity Value Per Share | 183.34 |