Discounted Cash Flow (DCF) Analysis Levered

ING Groep N.V. (ING)

$13.29

-0.27 (-1.99%)
All numbers are in Millions, Currency in USD
Stock DCF: 106.15 | 13.29 | undervalue

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 17,61618,15818,06217,81918,28518,459.5218,635.7118,813.5918,993.1619,174.44
Revenue (%)
Operating Cash Flow -5,2536,91513,055103,179-14,94321,333.9821,537.6021,743.1721,950.7022,160.22
Operating Cash Flow (%)
Capital Expenditure -264-286-355-287-184-282.66-285.35-288.08-290.83-293.60
Capital Expenditure (%)
Free Cash Flow -5,5176,62912,700102,892-15,12721,051.3221,252.2521,455.1021,659.8821,866.61

Weighted Average Cost Of Capital

Share price $ 13.29
Beta 1.758
Diluted Shares Outstanding 3,890.70
Cost of Debt
Tax Rate 29.58
After-tax Cost of Debt 4.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.918
Total Debt 116,014
Total Equity 51,707.40
Total Capital 167,721.40
Debt Weighting 69.17
Equity Weighting 30.83
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 17,61618,15818,06217,81918,28518,459.5218,635.7118,813.5918,993.1619,174.44
Operating Cash Flow -5,2536,91513,055103,179-14,94321,333.9821,537.6021,743.1721,950.7022,160.22
Capital Expenditure -264-286-355-287-184-282.66-285.35-288.08-290.83-293.60
Free Cash Flow -5,5176,62912,700102,892-15,12721,051.3221,252.2521,455.1021,659.8821,866.61
WACC
PV LFCF 14,169.8113,391.7412,656.3911,961.4211,304.62
SUM PV LFCF 88,293.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.82
Free cash flow (t + 1) 22,303.95
Terminal Value 462,737.48
Present Value of Terminal Value 332,714.56

Intrinsic Value

Enterprise Value 421,007.70
Net Debt 8,007
Equity Value 413,000.70
Shares Outstanding 3,890.70
Equity Value Per Share 106.15