Discounted Cash Flow (DCF) Analysis Levered
Diageo plc (DEO)
$141.96
+1.43 (+1.02%)
All numbers are in Millions, Currency in USD
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 | 12,867 | 11,752 | 12,733 | 18,809.27 | 17,113 | 18,755.18 | 20,554.94 | 22,527.40 | 24,689.15 | 27,058.34 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 3,248 | 2,320 | 3,654 | 4,789.96 | 3,024 | 4,381.88 | 4,802.37 | 5,263.21 | 5,768.28 | 6,321.80 |
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 | 2,577 | 1,620 | 3,028 | 3,454.61 | 1,844 | 3,253.48 | 3,565.69 | 3,907.86 | 4,282.86 | 4,693.84 |
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 | 12,867 | 11,752 | 12,733 | 18,809.27 | 17,113 | 18,755.18 | 20,554.94 | 22,527.40 | 24,689.15 | 27,058.34 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 3,248 | 2,320 | 3,654 | 4,789.96 | 3,024 | 4,381.88 | 4,802.37 | 5,263.21 | 5,768.28 | 6,321.80 |
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 | 2,577 | 1,620 | 3,028 | 3,454.61 | 1,844 | 3,253.48 | 3,565.69 | 3,907.86 | 4,282.86 | 4,693.84 |
WACC | ||||||||||
PV LFCF | 3,078.62 | 3,192.70 | 3,311.01 | 3,433.70 | 3,560.94 | |||||
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 |