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
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 | 7,882.40 | 9,714.40 | 10,221.30 | 9,061 | 10,240.70 | 11,012.01 | 11,841.42 | 12,733.30 | 13,692.36 | 14,723.65 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 881.80 | 565.10 | 1,529.20 | 1,847.20 | 2,075.60 | 1,599.37 | 1,719.83 | 1,849.37 | 1,988.66 | 2,138.45 |
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 | 725.90 | 388 | 1,330.70 | 1,679.70 | 1,880.30 | 1,390.17 | 1,494.88 | 1,607.47 | 1,728.55 | 1,858.74 |
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 | 7,882.40 | 9,714.40 | 10,221.30 | 9,061 | 10,240.70 | 11,012.01 | 11,841.42 | 12,733.30 | 13,692.36 | 14,723.65 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 881.80 | 565.10 | 1,529.20 | 1,847.20 | 2,075.60 | 1,599.37 | 1,719.83 | 1,849.37 | 1,988.66 | 2,138.45 |
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 | 725.90 | 388 | 1,330.70 | 1,679.70 | 1,880.30 | 1,390.17 | 1,494.88 | 1,607.47 | 1,728.55 | 1,858.74 |
WACC | ||||||||||
PV LFCF | 1,297.17 | 1,301.55 | 1,305.94 | 1,310.35 | 1,314.78 | |||||
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 |