Discounted Cash Flow (DCF) Analysis Levered

Invesco Ltd. (IVZ)

$18.08

-0.22 (-1.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 30.39 | 18.08 | undervalue

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 5,314.106,117.406,145.606,894.506,048.906,283.276,526.726,779.617,042.297,315.16
Revenue (%)
Operating Cash Flow 828.801,116.601,230.301,078.101,051.081,091.801,134.111,178.051,223.691,271.11
Operating Cash Flow (%)
Capital Expenditure -102.50-124.30-115-108.80-112.06-116.40-120.91-125.59-130.46-135.51
Capital Expenditure (%)
Free Cash Flow 726.30992.301,115.30969.30939.02975.401,013.201,052.461,093.231,135.59

Weighted Average Cost Of Capital

Share price $ 18.08
Beta 1.372
Diluted Shares Outstanding 465.40
Cost of Debt
Tax Rate 45.19
After-tax Cost of Debt 2.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.026
Total Debt -
Total Equity 8,414.43
Total Capital 8,414.43
Debt Weighting 0.00
Equity Weighting 100.00
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 5,314.106,117.406,145.606,894.506,048.906,283.276,526.726,779.617,042.297,315.16
Operating Cash Flow 828.801,116.601,230.301,078.101,051.081,091.801,134.111,178.051,223.691,271.11
Capital Expenditure -102.50-124.30-115-108.80-112.06-116.40-120.91-125.59-130.46-135.51
Free Cash Flow 726.30992.301,115.30969.30939.02975.401,013.201,052.461,093.231,135.59
WACC
PV LFCF 886.49836.90790.08745.88704.15
SUM PV LFCF 3,963.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.03
Free cash flow (t + 1) 1,158.30
Terminal Value 14,424.71
Present Value of Terminal Value 8,944.41

Intrinsic Value

Enterprise Value 12,907.91
Net Debt -1,234.70
Equity Value 14,142.61
Shares Outstanding 465.40
Equity Value Per Share 30.39