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
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 | 9,714.40 | 10,221.30 | 9,061 | 10,240.70 | 10,927.80 | 11,299.22 | 11,683.26 | 12,080.35 | 12,490.94 | 12,915.48 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 565.10 | 1,529.20 | 1,847.20 | 2,075.60 | 608.80 | 1,514.18 | 1,565.64 | 1,618.85 | 1,673.88 | 1,730.77 |
| 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 | 388 | 1,330.70 | 1,679.70 | 1,880.30 | 430.70 | 1,307.39 | 1,351.82 | 1,397.77 | 1,445.28 | 1,494.40 |
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 | 9,714.40 | 10,221.30 | 9,061 | 10,240.70 | 10,927.80 | 11,299.22 | 11,683.26 | 12,080.35 | 12,490.94 | 12,915.48 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 565.10 | 1,529.20 | 1,847.20 | 2,075.60 | 608.80 | 1,514.18 | 1,565.64 | 1,618.85 | 1,673.88 | 1,730.77 |
| 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 | 388 | 1,330.70 | 1,679.70 | 1,880.30 | 430.70 | 1,307.39 | 1,351.82 | 1,397.77 | 1,445.28 | 1,494.40 |
| WACC | ||||||||||
| PV LFCF | 1,217.76 | 1,172.83 | 1,129.56 | 1,087.88 | 1,047.74 | |||||
| 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 |