Discounted Cash Flow (DCF) Analysis Levered

Johnson Controls International plc (JCI)

$51.89

+0.47 (+0.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 14.62 | 51.89 | overvalue

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	22,835	23,400	23,968	22,317	23,668	23,908.64	24,151.73	24,397.29	24,645.35	24,895.92
Revenue (%)
Operating Cash Flow	12	2,513	1,202	2,219	2,487	1,733.75	1,751.38	1,769.19	1,787.17	1,805.34
Operating Cash Flow (%)
Capital Expenditure	-1,343	-1,030	-586	-443	-552	-815.06	-823.34	-831.72	-840.17	-848.71
Capital Expenditure (%)
Free Cash Flow	-1,331	1,483	616	1,776	1,935	918.69	928.03	937.47	947	956.63

Weighted Average Cost Of Capital

Share price	$ 51.89
Beta	1.169
Diluted Shares Outstanding	721.10
Cost of Debt
Tax Rate	37.38
After-tax Cost of Debt	1.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.373
Total Debt	7,740
Total Equity	37,417.88
Total Capital	45,157.88
Debt Weighting	17.14
Equity Weighting	82.86
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	22,835	23,400	23,968	22,317	23,668	23,908.64	24,151.73	24,397.29	24,645.35	24,895.92
Operating Cash Flow	12	2,513	1,202	2,219	2,487	1,733.75	1,751.38	1,769.19	1,787.17	1,805.34
Capital Expenditure	-1,343	-1,030	-586	-443	-552	-815.06	-823.34	-831.72	-840.17	-848.71
Free Cash Flow	-1,331	1,483	616	1,776	1,935	918.69	928.03	937.47	947	956.63
WACC
PV LFCF						856.67	806.96	760.13	716.02	674.47
SUM PV LFCF										3,814.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.24
Free cash flow (t + 1)	975.76
Terminal Value	18,621.43
Present Value of Terminal Value	13,128.92

Intrinsic Value

Enterprise Value	16,943.16
Net Debt	6,404
Equity Value	10,539.16
Shares Outstanding	721.10
Equity Value Per Share	14.62