Discounted Cash Flow (DCF) Analysis Levered

Lloyds Banking Group plc (LYG)

$2.525

-0.01 (-0.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.12 | 2.525 | undervalue

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 34,19322,03642,06629,17437,44442,409.3348,033.1054,402.6161,616.7769,787.58
Revenue (%)
Operating Cash Flow -3,195-11,10711,28127,1716,6216,606.207,482.238,474.429,598.1910,870.98
Operating Cash Flow (%)
Capital Expenditure -3,655-3,514-3,442-2,901-3,228-4,527.87-5,128.30-5,808.35-6,578.58-7,450.94
Capital Expenditure (%)
Free Cash Flow -6,850-14,6217,83924,2703,3932,078.332,353.932,666.083,019.613,420.04

Weighted Average Cost Of Capital

Share price $ 2.525
Beta 1.194
Diluted Shares Outstanding 17,946.25
Cost of Debt
Tax Rate 16.20
After-tax Cost of Debt 3.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.257
Total Debt 90,523
Total Equity 45,314.28
Total Capital 135,837.28
Debt Weighting 66.64
Equity Weighting 33.36
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 34,19322,03642,06629,17437,44442,409.3348,033.1054,402.6161,616.7769,787.58
Operating Cash Flow -3,195-11,10711,28127,1716,6216,606.207,482.238,474.429,598.1910,870.98
Capital Expenditure -3,655-3,514-3,442-2,901-3,228-4,527.87-5,128.30-5,808.35-6,578.58-7,450.94
Free Cash Flow -6,850-14,6217,83924,2703,3932,078.332,353.932,666.083,019.613,420.04
WACC
PV LFCF 1,970.172,115.292,271.112,438.412,618.03
SUM PV LFCF 11,413.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.49
Free cash flow (t + 1) 3,488.44
Terminal Value 99,955.22
Present Value of Terminal Value 76,515.43

Intrinsic Value

Enterprise Value 87,928.44
Net Debt 13,956
Equity Value 73,972.44
Shares Outstanding 17,946.25
Equity Value Per Share 4.12