Discounted Cash Flow (DCF) Analysis Levered
Mastercard Incorporated (MA)
$351.63
-2.74 (-0.77%)
All numbers are in Millions, Currency in USD
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 | 14,950 | 16,883 | 15,301 | 18,884 | 22,237 | 24,723.76 | 27,488.61 | 30,562.66 | 33,980.48 | 37,780.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,223 | 8,183 | 7,224 | 9,463 | 11,195 | 11,756.75 | 13,071.50 | 14,533.29 | 16,158.54 | 17,965.55 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -504 | -728 | -708 | -814 | -1,097 | -1,065.80 | -1,184.99 | -1,317.51 | -1,464.84 | -1,628.65 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 5,719 | 7,455 | 6,516 | 8,649 | 10,098 | 10,690.95 | 11,886.51 | 13,215.78 | 14,693.70 | 16,336.89 |
Weighted Average Cost Of Capital
| Share price | $ 351.63 |
|---|---|
| Beta | 1.105 |
| Diluted Shares Outstanding | 971 |
| Cost of Debt | |
| Tax Rate | 15.36 |
| After-tax Cost of Debt | 2.84% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.597 |
| Total Debt | 14,023 |
| Total Equity | 341,432.73 |
| Total Capital | 355,455.73 |
| Debt Weighting | 3.95 |
| Equity Weighting | 96.05 |
| 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 | 14,950 | 16,883 | 15,301 | 18,884 | 22,237 | 24,723.76 | 27,488.61 | 30,562.66 | 33,980.48 | 37,780.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,223 | 8,183 | 7,224 | 9,463 | 11,195 | 11,756.75 | 13,071.50 | 14,533.29 | 16,158.54 | 17,965.55 |
| Capital Expenditure | -504 | -728 | -708 | -814 | -1,097 | -1,065.80 | -1,184.99 | -1,317.51 | -1,464.84 | -1,628.65 |
| Free Cash Flow | 5,719 | 7,455 | 6,516 | 8,649 | 10,098 | 10,690.95 | 11,886.51 | 13,215.78 | 14,693.70 | 16,336.89 |
| WACC | ||||||||||
| PV LFCF | 9,865.23 | 10,121.30 | 10,384.02 | 10,653.56 | 10,930.10 | |||||
| SUM PV LFCF | 51,954.21 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.37 |
| Free cash flow (t + 1) | 16,663.63 |
| Terminal Value | 261,595.47 |
| Present Value of Terminal Value | 175,018.86 |
Intrinsic Value
| Enterprise Value | 226,973.08 |
|---|---|
| Net Debt | 7,015 |
| Equity Value | 219,958.08 |
| Shares Outstanding | 971 |
| Equity Value Per Share | 226.53 |