Discounted Cash Flow (DCF) Analysis Levered
HSBC Holdings plc (HSBC)
$34.13
-0.16 (-0.47%)
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 | 63,796 | 70,861 | 62,883 | 63,644 | 67,013 | 68,071.70 | 69,147.13 | 70,239.55 | 71,349.23 | 72,476.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,469 | 29,743 | 182,220 | 104,312 | 26,434 | 74,230.20 | 75,402.93 | 76,594.18 | 77,804.25 | 79,033.44 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,044 | -3,632 | -3,510 | -3,565 | -4,410 | -3,765.87 | -3,825.37 | -3,885.80 | -3,947.19 | -4,009.55 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,425 | 26,111 | 178,710 | 100,747 | 22,024 | 70,464.33 | 71,577.56 | 72,708.38 | 73,857.06 | 75,023.89 |
Weighted Average Cost Of Capital
| Share price | $ 34.13 |
|---|---|
| Beta | 0.617 |
| Diluted Shares Outstanding | 4,060.40 |
| Cost of Debt | |
| Tax Rate | 8.52 |
| After-tax Cost of Debt | 10.05% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.406 |
| Total Debt | 204,239 |
| Total Equity | 138,581.45 |
| Total Capital | 342,820.45 |
| Debt Weighting | 59.58 |
| Equity Weighting | 40.42 |
| 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 | 63,796 | 70,861 | 62,883 | 63,644 | 67,013 | 68,071.70 | 69,147.13 | 70,239.55 | 71,349.23 | 72,476.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,469 | 29,743 | 182,220 | 104,312 | 26,434 | 74,230.20 | 75,402.93 | 76,594.18 | 77,804.25 | 79,033.44 |
| Capital Expenditure | -3,044 | -3,632 | -3,510 | -3,565 | -4,410 | -3,765.87 | -3,825.37 | -3,885.80 | -3,947.19 | -4,009.55 |
| Free Cash Flow | 3,425 | 26,111 | 178,710 | 100,747 | 22,024 | 70,464.33 | 71,577.56 | 72,708.38 | 73,857.06 | 75,023.89 |
| WACC | ||||||||||
| PV LFCF | 64,896.23 | 60,712.37 | 56,798.25 | 53,136.46 | 49,710.76 | |||||
| SUM PV LFCF | 285,254.08 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.58 |
| Free cash flow (t + 1) | 76,524.37 |
| Terminal Value | 1,162,984.27 |
| Present Value of Terminal Value | 770,592.28 |
Intrinsic Value
| Enterprise Value | 1,055,846.36 |
|---|---|
| Net Debt | -145,812 |
| Equity Value | 1,201,658.36 |
| Shares Outstanding | 4,060.40 |
| Equity Value Per Share | 295.95 |