Discounted Cash Flow (DCF) Analysis Levered

Diageo plc (DEO)

$141.96

+1.43 (+1.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.13 | 141.96 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 12,86711,75212,73318,809.2717,11318,755.1820,554.9422,527.4024,689.1527,058.34
Revenue (%)
Operating Cash Flow 3,2482,3203,6544,789.963,0244,381.884,802.375,263.215,768.286,321.80
Operating Cash Flow (%)
Capital Expenditure -671-700-626-1,335.35-1,180-1,128.40-1,236.68-1,355.36-1,485.42-1,627.96
Capital Expenditure (%)
Free Cash Flow 2,5771,6203,0283,454.611,8443,253.483,565.693,907.864,282.864,693.84

Weighted Average Cost Of Capital

Share price $ 141.96
Beta 0.323
Diluted Shares Outstanding 2,271
Cost of Debt
Tax Rate 21.16
After-tax Cost of Debt 3.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.780
Total Debt 16,502
Total Equity 322,391.16
Total Capital 338,893.16
Debt Weighting 4.87
Equity Weighting 95.13
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 12,86711,75212,73318,809.2717,11318,755.1820,554.9422,527.4024,689.1527,058.34
Operating Cash Flow 3,2482,3203,6544,789.963,0244,381.884,802.375,263.215,768.286,321.80
Capital Expenditure -671-700-626-1,335.35-1,180-1,128.40-1,236.68-1,355.36-1,485.42-1,627.96
Free Cash Flow 2,5771,6203,0283,454.611,8443,253.483,565.693,907.864,282.864,693.84
WACC
PV LFCF 3,078.623,192.703,311.013,433.703,560.94
SUM PV LFCF 16,576.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.68
Free cash flow (t + 1) 4,787.72
Terminal Value 130,101.05
Present Value of Terminal Value 98,699.92

Intrinsic Value

Enterprise Value 115,276.87
Net Debt 15,063
Equity Value 100,213.87
Shares Outstanding 2,271
Equity Value Per Share 44.13