Discounted Cash Flow (DCF) Analysis Levered

Invesco Ltd. (IVZ)

$19.52

-0.52 (-2.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 28.10 | 19.52 | 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 828.801,116.601,230.301,078.10696.201,018.081,057.521,098.501,141.061,185.27
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 726.30992.301,115.30969.30584.14901.68936.62972.911,010.601,049.76

Weighted Average Cost Of Capital

Share price $ 19.52
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 10.094
Total Debt -
Total Equity 9,084.61
Total Capital 9,084.61
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 828.801,116.601,230.301,078.10696.201,018.081,057.521,098.501,141.061,185.27
Capital Expenditure -102.50-124.30-115-108.80-112.06-116.40-120.91-125.59-130.46-135.51
Free Cash Flow 726.30992.301,115.30969.30584.14901.68936.62972.911,010.601,049.76
WACC
PV LFCF 506.48477.89450.91425.45401.43
SUM PV LFCF 3,658.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.09
Free cash flow (t + 1) 1,070.75
Terminal Value 13,235.53
Present Value of Terminal Value 8,184.69

Intrinsic Value

Enterprise Value 11,842.85
Net Debt -1,234.70
Equity Value 13,077.55
Shares Outstanding 465.40
Equity Value Per Share 28.10