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 |