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
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 | 34,193 | 22,036 | 42,066 | 29,174 | 37,444 | 42,409.33 | 48,033.10 | 54,402.61 | 61,616.77 | 69,787.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -3,195 | -11,107 | 11,281 | 27,171 | 6,621 | 6,606.20 | 7,482.23 | 8,474.42 | 9,598.19 | 10,870.98 |
| 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 | -14,621 | 7,839 | 24,270 | 3,393 | 2,078.33 | 2,353.93 | 2,666.08 | 3,019.61 | 3,420.04 |
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 | 34,193 | 22,036 | 42,066 | 29,174 | 37,444 | 42,409.33 | 48,033.10 | 54,402.61 | 61,616.77 | 69,787.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -3,195 | -11,107 | 11,281 | 27,171 | 6,621 | 6,606.20 | 7,482.23 | 8,474.42 | 9,598.19 | 10,870.98 |
| 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 | -14,621 | 7,839 | 24,270 | 3,393 | 2,078.33 | 2,353.93 | 2,666.08 | 3,019.61 | 3,420.04 |
| WACC | ||||||||||
| PV LFCF | 1,970.17 | 2,115.29 | 2,271.11 | 2,438.41 | 2,618.03 | |||||
| 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 |