Discounted Cash Flow (DCF) Analysis Levered

Genpact Limited (G)

$37.735

+0.92 (+2.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 52.70 | 37.735 | undervalue

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	3,000.79	3,520.54	3,709.38	4,022.21	4,371.17	4,806.04	5,284.16	5,809.85	6,387.84	7,023.33
Revenue (%)
Operating Cash Flow	339.51	427.89	584.31	694.28	443.67	640.47	704.18	774.24	851.26	935.95
Operating Cash Flow (%)
Capital Expenditure	-160.42	-108.76	-80.37	-57.25	-54.39	-127.55	-140.24	-154.19	-169.53	-186.39
Capital Expenditure (%)
Free Cash Flow	179.09	319.13	503.94	637.03	389.28	512.92	563.95	620.05	681.74	749.56

Weighted Average Cost Of Capital

Share price	$ 37.735
Beta	1.209
Diluted Shares Outstanding	188.09
Cost of Debt
Tax Rate	24.04
After-tax Cost of Debt	2.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.400
Total Debt	1,698.14
Total Equity	7,097.47
Total Capital	8,795.61
Debt Weighting	19.31
Equity Weighting	80.69
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	3,000.79	3,520.54	3,709.38	4,022.21	4,371.17	4,806.04	5,284.16	5,809.85	6,387.84	7,023.33
Operating Cash Flow	339.51	427.89	584.31	694.28	443.67	640.47	704.18	774.24	851.26	935.95
Capital Expenditure	-160.42	-108.76	-80.37	-57.25	-54.39	-127.55	-140.24	-154.19	-169.53	-186.39
Free Cash Flow	179.09	319.13	503.94	637.03	389.28	512.92	563.95	620.05	681.74	749.56
WACC
PV LFCF						474.53	482.69	490.99	499.43	508.02
SUM PV LFCF										2,455.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.09
Free cash flow (t + 1)	764.55
Terminal Value	12,554.17
Present Value of Terminal Value	8,508.64

Intrinsic Value

Enterprise Value	10,964.29
Net Debt	1,051.37
Equity Value	9,912.92
Shares Outstanding	188.09
Equity Value Per Share	52.70