Discounted Cash Flow (DCF) Analysis Levered

The Interpublic Group of Companies,... (IPG)

$37.24

+0.78 (+2.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 59.75 | 37.24 | undervalue

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 9,714.4010,221.309,06110,240.7010,927.8011,299.2211,683.2612,080.3512,490.9412,915.48
Revenue (%)
Operating Cash Flow 565.101,529.201,847.202,075.60608.801,514.181,565.641,618.851,673.881,730.77
Operating Cash Flow (%)
Capital Expenditure -177.10-198.50-167.50-195.30-178.10-206.79-213.82-221.08-228.60-236.37
Capital Expenditure (%)
Free Cash Flow 3881,330.701,679.701,880.30430.701,307.391,351.821,397.771,445.281,494.40

Weighted Average Cost Of Capital

Share price $ 37.24
Beta 1.113
Diluted Shares Outstanding 395.10
Cost of Debt
Tax Rate 26.08
After-tax Cost of Debt 2.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.749
Total Debt 4,531.60
Total Equity 14,713.52
Total Capital 19,245.12
Debt Weighting 23.55
Equity Weighting 76.45
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 9,714.4010,221.309,06110,240.7010,927.8011,299.2211,683.2612,080.3512,490.9412,915.48
Operating Cash Flow 565.101,529.201,847.202,075.60608.801,514.181,565.641,618.851,673.881,730.77
Capital Expenditure -177.10-198.50-167.50-195.30-178.10-206.79-213.82-221.08-228.60-236.37
Free Cash Flow 3881,330.701,679.701,880.30430.701,307.391,351.821,397.771,445.281,494.40
WACC
PV LFCF 1,217.761,172.831,129.561,087.881,047.74
SUM PV LFCF 5,655.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.36
Free cash flow (t + 1) 1,524.29
Terminal Value 28,438.20
Present Value of Terminal Value 19,938.37

Intrinsic Value

Enterprise Value 25,594.14
Net Debt 1,986.30
Equity Value 23,607.84
Shares Outstanding 395.10
Equity Value Per Share 59.75