Discounted Cash Flow (DCF) Analysis Levered
Illinois Tool Works Inc. (ITW)
$230.31
-1.74 (-0.75%)
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 | 14,768 | 14,109 | 12,574 | 14,455 | 15,932 | 16,323.75 | 16,725.12 | 17,136.37 | 17,557.73 | 17,989.45 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,811 | 2,995 | 2,807 | 2,557 | 2,348 | 3,101.93 | 3,178.20 | 3,256.35 | 3,336.42 | 3,418.46 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -364 | -326 | -236 | -296 | -412 | -368.46 | -377.52 | -386.80 | -396.31 | -406.06 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 2,447 | 2,669 | 2,571 | 2,261 | 1,936 | 2,733.47 | 2,800.68 | 2,869.55 | 2,940.11 | 3,012.40 |
Weighted Average Cost Of Capital
Share price | $ 230.31 |
---|---|
Beta | 1.158 |
Diluted Shares Outstanding | 314.60 |
Cost of Debt | |
Tax Rate | 21.03 |
After-tax Cost of Debt | 2.06% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 10.037 |
Total Debt | 7,763 |
Total Equity | 72,455.53 |
Total Capital | 80,218.53 |
Debt Weighting | 9.68 |
Equity Weighting | 90.32 |
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 | 14,768 | 14,109 | 12,574 | 14,455 | 15,932 | 16,323.75 | 16,725.12 | 17,136.37 | 17,557.73 | 17,989.45 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,811 | 2,995 | 2,807 | 2,557 | 2,348 | 3,101.93 | 3,178.20 | 3,256.35 | 3,336.42 | 3,418.46 |
Capital Expenditure | -364 | -326 | -236 | -296 | -412 | -368.46 | -377.52 | -386.80 | -396.31 | -406.06 |
Free Cash Flow | 2,447 | 2,669 | 2,571 | 2,261 | 1,936 | 2,733.47 | 2,800.68 | 2,869.55 | 2,940.11 | 3,012.40 |
WACC | ||||||||||
PV LFCF | 2,501.58 | 2,345.64 | 2,199.43 | 2,062.34 | 1,933.78 | |||||
SUM PV LFCF | 11,042.77 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 9.27 |
Free cash flow (t + 1) | 3,072.65 |
Terminal Value | 42,264.76 |
Present Value of Terminal Value | 27,131.49 |
Intrinsic Value
Enterprise Value | 38,174.26 |
---|---|
Net Debt | 7,055 |
Equity Value | 31,119.26 |
Shares Outstanding | 314.60 |
Equity Value Per Share | 98.92 |