Discounted Cash Flow (DCF) Analysis Levered
IHS Markit Ltd. (INFO)
$108.61
+0.80 (+0.74%)
All numbers are in Millions, Currency in USD
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 | 3,599.70 | 4,009.20 | 4,414.60 | 4,287.80 | 4,658.10 | 4,975.45 | 5,314.42 | 5,676.49 | 6,063.22 | 6,476.30 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 961.50 | 1,289.50 | 1,251.30 | 1,138.80 | 1,486.20 | 1,449.68 | 1,548.45 | 1,653.94 | 1,766.62 | 1,886.98 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -260.20 | -222.70 | -278.10 | -274.80 | -294.30 | -316.53 | -338.10 | -361.13 | -385.74 | -412.02 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 701.30 | 1,066.80 | 973.20 | 864 | 1,191.90 | 1,133.15 | 1,210.35 | 1,292.81 | 1,380.88 | 1,474.96 |
Weighted Average Cost Of Capital
| Share price | $ 108.61 |
|---|---|
| Beta | 1.046 |
| Diluted Shares Outstanding | 401.30 |
| Cost of Debt | |
| Tax Rate | 10.04 |
| After-tax Cost of Debt | 3.99% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.436 |
| Total Debt | 4,957.40 |
| Total Equity | 43,585.19 |
| Total Capital | 48,542.59 |
| Debt Weighting | 10.21 |
| Equity Weighting | 89.79 |
| 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 | 3,599.70 | 4,009.20 | 4,414.60 | 4,287.80 | 4,658.10 | 4,975.45 | 5,314.42 | 5,676.49 | 6,063.22 | 6,476.30 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 961.50 | 1,289.50 | 1,251.30 | 1,138.80 | 1,486.20 | 1,449.68 | 1,548.45 | 1,653.94 | 1,766.62 | 1,886.98 |
| Capital Expenditure | -260.20 | -222.70 | -278.10 | -274.80 | -294.30 | -316.53 | -338.10 | -361.13 | -385.74 | -412.02 |
| Free Cash Flow | 701.30 | 1,066.80 | 973.20 | 864 | 1,191.90 | 1,133.15 | 1,210.35 | 1,292.81 | 1,380.88 | 1,474.96 |
| WACC | ||||||||||
| PV LFCF | 1,049.41 | 1,038.06 | 1,026.84 | 1,015.74 | 1,004.77 | |||||
| SUM PV LFCF | 5,134.82 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.98 |
| Free cash flow (t + 1) | 1,504.46 |
| Terminal Value | 25,158.23 |
| Present Value of Terminal Value | 17,138.13 |
Intrinsic Value
| Enterprise Value | 22,272.95 |
|---|---|
| Net Debt | 4,664.30 |
| Equity Value | 17,608.65 |
| Shares Outstanding | 401.30 |
| Equity Value Per Share | 43.88 |