Discounted Cash Flow (DCF) Analysis Levered

Mastercard Incorporated (MA)

$350.14

+0.48 (+0.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 222.41 | 350.14 | overvalue

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 14,95016,88315,30118,88422,23724,723.7627,488.6130,562.6633,980.4837,780.51
Revenue (%)
Operating Cash Flow 6,2238,1837,2249,46311,19511,756.7513,071.5014,533.2916,158.5417,965.55
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 5,7197,4556,5168,64910,09810,690.9511,886.5113,215.7814,693.7016,336.89

Weighted Average Cost Of Capital

Share price $ 350.14
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 8.709
Total Debt 14,023
Total Equity 339,985.94
Total Capital 354,008.94
Debt Weighting 3.96
Equity Weighting 96.04
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 14,95016,88315,30118,88422,23724,723.7627,488.6130,562.6633,980.4837,780.51
Operating Cash Flow 6,2238,1837,2249,46311,19511,756.7513,071.5014,533.2916,158.5417,965.55
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 5,7197,4556,5168,64910,09810,690.9511,886.5113,215.7814,693.7016,336.89
WACC
PV LFCF 9,855.2210,100.7910,352.4710,610.4210,874.80
SUM PV LFCF 51,793.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.48
Free cash flow (t + 1) 16,663.63
Terminal Value 257,154.81
Present Value of Terminal Value 171,177.34

Intrinsic Value

Enterprise Value 222,971.03
Net Debt 7,015
Equity Value 215,956.03
Shares Outstanding 971
Equity Value Per Share 222.41