Discounted Cash Flow (DCF) Analysis Levered

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

$35.95

+0.16 (+0.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 77.39 | 35.95 | 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 7,882.409,714.4010,221.309,06110,240.7011,012.0111,841.4212,733.3013,692.3614,723.65
Revenue (%)
Operating Cash Flow 881.80565.101,529.201,847.202,075.601,599.371,719.831,849.371,988.662,138.45
Operating Cash Flow (%)
Capital Expenditure -155.90-177.10-198.50-167.50-195.30-209.20-224.95-241.90-260.12-279.71
Capital Expenditure (%)
Free Cash Flow 725.903881,330.701,679.701,880.301,390.171,494.881,607.471,728.551,858.74

Weighted Average Cost Of Capital

Share price $ 35.95
Beta 1.076
Diluted Shares Outstanding 399.80
Cost of Debt
Tax Rate 22.04
After-tax Cost of Debt 2.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.630
Total Debt 4,798.60
Total Equity 14,372.81
Total Capital 19,171.41
Debt Weighting 25.03
Equity Weighting 74.97
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 7,882.409,714.4010,221.309,06110,240.7011,012.0111,841.4212,733.3013,692.3614,723.65
Operating Cash Flow 881.80565.101,529.201,847.202,075.601,599.371,719.831,849.371,988.662,138.45
Capital Expenditure -155.90-177.10-198.50-167.50-195.30-209.20-224.95-241.90-260.12-279.71
Free Cash Flow 725.903881,330.701,679.701,880.301,390.171,494.881,607.471,728.551,858.74
WACC
PV LFCF 1,297.171,301.551,305.941,310.351,314.78
SUM PV LFCF 6,529.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.17
Free cash flow (t + 1) 1,895.91
Terminal Value 36,671.41
Present Value of Terminal Value 25,939.49

Intrinsic Value

Enterprise Value 32,469.28
Net Debt 1,528.60
Equity Value 30,940.68
Shares Outstanding 399.80
Equity Value Per Share 77.39