Discounted Cash Flow (DCF) Analysis Levered
Illinois Tool Works Inc. (ITW)
$207.07
-0.57 (-0.27%)
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 | 14,314 | 14,768 | 14,109 | 12,574 | 14,455 | 14,555.80 | 14,657.29 | 14,759.50 | 14,862.42 | 14,966.06 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,402 | 2,811 | 2,995 | 2,807 | 2,557 | 2,825.45 | 2,845.16 | 2,865 | 2,884.97 | 2,905.09 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -297 | -364 | -326 | -236 | -296 | -313.67 | -315.86 | -318.06 | -320.28 | -322.52 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 2,105 | 2,447 | 2,669 | 2,571 | 2,261 | 2,511.78 | 2,529.29 | 2,546.93 | 2,564.69 | 2,582.58 |
Weighted Average Cost Of Capital
Share price | $ 207.07 |
---|---|
Beta | 1.112 |
Diluted Shares Outstanding | 314.60 |
Cost of Debt | |
Tax Rate | 19.00 |
After-tax Cost of Debt | 2.07% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.127 |
Total Debt | 7,881 |
Total Equity | 65,144.22 |
Total Capital | 73,025.22 |
Debt Weighting | 10.79 |
Equity Weighting | 89.21 |
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 | 14,314 | 14,768 | 14,109 | 12,574 | 14,455 | 14,555.80 | 14,657.29 | 14,759.50 | 14,862.42 | 14,966.06 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,402 | 2,811 | 2,995 | 2,807 | 2,557 | 2,825.45 | 2,845.16 | 2,865 | 2,884.97 | 2,905.09 |
Capital Expenditure | -297 | -364 | -326 | -236 | -296 | -313.67 | -315.86 | -318.06 | -320.28 | -322.52 |
Free Cash Flow | 2,105 | 2,447 | 2,669 | 2,571 | 2,261 | 2,511.78 | 2,529.29 | 2,546.93 | 2,564.69 | 2,582.58 |
WACC | ||||||||||
PV LFCF | 2,337.19 | 2,189.90 | 2,051.90 | 1,922.59 | 1,801.43 | |||||
SUM PV LFCF | 10,303.01 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.47 |
Free cash flow (t + 1) | 2,634.23 |
Terminal Value | 48,157.71 |
Present Value of Terminal Value | 33,591.52 |
Intrinsic Value
Enterprise Value | 43,894.52 |
---|---|
Net Debt | 6,354 |
Equity Value | 37,540.52 |
Shares Outstanding | 314.60 |
Equity Value Per Share | 119.33 |