Discounted Cash Flow (DCF) Analysis Levered

IHS Markit Ltd. (INFO)

$108.61

+0.80 (+-%)
All numbers are in Millions, Currency in USD
Stock DCF: 43.41 | 108.61 | overvalue

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 3,599.704,009.204,414.604,287.804,658.104,975.455,314.425,676.496,063.226,476.30
Revenue (%)
Operating Cash Flow 961.501,289.501,251.301,138.801,486.201,449.681,548.451,653.941,766.621,886.98
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 701.301,066.80973.208641,191.901,133.151,210.351,292.811,380.881,474.96

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 8.487
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 3,599.704,009.204,414.604,287.804,658.104,975.455,314.425,676.496,063.226,476.30
Operating Cash Flow 961.501,289.501,251.301,138.801,486.201,449.681,548.451,653.941,766.621,886.98
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 701.301,066.80973.208641,191.901,133.151,210.351,292.811,380.881,474.96
WACC
PV LFCF 1,048.921,037.101,025.421,013.861,002.44
SUM PV LFCF 5,127.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.03
Free cash flow (t + 1) 1,504.46
Terminal Value 24,949.62
Present Value of Terminal Value 16,956.73

Intrinsic Value

Enterprise Value 22,084.48
Net Debt 4,664.30
Equity Value 17,420.18
Shares Outstanding 401.30
Equity Value Per Share 43.41