Discounted Cash Flow (DCF) Analysis Levered

Fiserv, Inc. (FISV)

$95.14

-0.76 (-0.79%)
All numbers are in Millions, Currency in USD
Stock DCF: 338.53 | 95.14 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,6965,82310,18714,85216,22621,589.4528,725.7838,22150,854.8367,664.74
Revenue (%)
Operating Cash Flow 1,4831,5522,7954,1474,0345,738.877,635.8410,159.8413,518.1517,986.53
Operating Cash Flow (%)
Capital Expenditure -287-360-721-900-1,160-1,360.46-1,810.15-2,408.49-3,204.61-4,263.89
Capital Expenditure (%)
Free Cash Flow 1,1961,1922,0743,2472,8744,378.425,825.697,751.3510,313.5313,722.64

Weighted Average Cost Of Capital

Share price $ 95.14
Beta 0.877
Diluted Shares Outstanding 669.70
Cost of Debt
Tax Rate 19.93
After-tax Cost of Debt 2.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.101
Total Debt 21,237
Total Equity 63,715.26
Total Capital 84,952.26
Debt Weighting 25.00
Equity Weighting 75.00
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,6965,82310,18714,85216,22621,589.4528,725.7838,22150,854.8367,664.74
Operating Cash Flow 1,4831,5522,7954,1474,0345,738.877,635.8410,159.8413,518.1517,986.53
Capital Expenditure -287-360-721-900-1,160-1,360.46-1,810.15-2,408.49-3,204.61-4,263.89
Free Cash Flow 1,1961,1922,0743,2472,8744,378.425,825.697,751.3510,313.5313,722.64
WACC
PV LFCF 4,102.335,114.166,375.557,948.079,908.44
SUM PV LFCF 33,448.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.73
Free cash flow (t + 1) 13,997.09
Terminal Value 295,921.63
Present Value of Terminal Value 213,670.30

Intrinsic Value

Enterprise Value 247,118.84
Net Debt 20,402
Equity Value 226,716.84
Shares Outstanding 669.70
Equity Value Per Share 338.53