Discounted Cash Flow (DCF) Analysis Levered
HDFC Bank Limited (HDB)
$63.74
+0.59 (+0.93%)
All numbers are in Millions, Currency in USD
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 | 567,757.60 | 667,627.80 | 791,746.40 | 936,662.20 | 1,019,413.70 | 1,180,785.13 | 1,367,701.37 | 1,584,206.13 | 1,834,983.22 | 2,125,457.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 94,274.20 | 183,272.20 | 171,179.70 | 921,776.20 | 581,018.20 | 522,101.85 | 604,749.68 | 700,480.50 | 811,365.35 | 939,803.09 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -9,181.50 | -16,355 | -18,294.30 | -17,806.50 | -26,324.40 | -25,648.70 | -29,708.84 | -34,411.70 | -39,859.01 | -46,168.62 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 85,092.70 | 166,917.20 | 152,885.40 | 903,969.70 | 554,693.80 | 496,453.16 | 575,040.84 | 666,068.80 | 771,506.34 | 893,634.46 |
Weighted Average Cost Of Capital
| Share price | $ 63.74 |
|---|---|
| Beta | 0.714 |
| Diluted Shares Outstanding | 1,835.26 |
| Cost of Debt | |
| Tax Rate | 25.65 |
| After-tax Cost of Debt | 19.87% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.849 |
| Total Debt | 2,186,639 |
| Total Equity | 116,979.74 |
| Total Capital | 2,303,618.74 |
| Debt Weighting | 94.92 |
| Equity Weighting | 5.08 |
| 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 | 567,757.60 | 667,627.80 | 791,746.40 | 936,662.20 | 1,019,413.70 | 1,180,785.13 | 1,367,701.37 | 1,584,206.13 | 1,834,983.22 | 2,125,457.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 94,274.20 | 183,272.20 | 171,179.70 | 921,776.20 | 581,018.20 | 522,101.85 | 604,749.68 | 700,480.50 | 811,365.35 | 939,803.09 |
| Capital Expenditure | -9,181.50 | -16,355 | -18,294.30 | -17,806.50 | -26,324.40 | -25,648.70 | -29,708.84 | -34,411.70 | -39,859.01 | -46,168.62 |
| Free Cash Flow | 85,092.70 | 166,917.20 | 152,885.40 | 903,969.70 | 554,693.80 | 496,453.16 | 575,040.84 | 666,068.80 | 771,506.34 | 893,634.46 |
| WACC | ||||||||||
| PV LFCF | 416,452.61 | 404,644.19 | 393,170.60 | 382,022.33 | 371,190.17 | |||||
| SUM PV LFCF | 1,967,479.90 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 19.21 |
| Free cash flow (t + 1) | 911,507.15 |
| Terminal Value | 5,296,380.90 |
| Present Value of Terminal Value | 2,199,965 |
Intrinsic Value
| Enterprise Value | 4,167,444.90 |
|---|---|
| Net Debt | 587,418.30 |
| Equity Value | 3,580,026.60 |
| Shares Outstanding | 1,835.26 |
| Equity Value Per Share | 1,950.69 |