Discounted Cash Flow (DCF) Analysis Levered

Mastercard Incorporated (MA)

$456.75

+5.00 (+1.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 239.91 | 456.75 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 16,88315,30118,88422,23725,09827,900.7031,016.3834,479.9938,330.3842,610.74
Revenue (%)
Operating Cash Flow 8,1837,2249,46311,19511,98013,608.2615,127.9016,817.2418,695.2320,782.93
Operating Cash Flow (%)
Capital Expenditure -728-708-814-1,097-371-1,097.12-1,219.63-1,355.83-1,507.24-1,675.55
Capital Expenditure (%)
Free Cash Flow 7,4556,5168,64910,09811,60912,511.1513,908.2715,461.4117,187.9919,107.38

Weighted Average Cost Of Capital

Share price $ 456.75
Beta 1.082
Diluted Shares Outstanding 946
Cost of Debt
Tax Rate 17.92
After-tax Cost of Debt 3.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.394
Total Debt 15,681
Total Equity 432,085.50
Total Capital 447,766.50
Debt Weighting 3.50
Equity Weighting 96.50
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 16,88315,30118,88422,23725,09827,900.7031,016.3834,479.9938,330.3842,610.74
Operating Cash Flow 8,1837,2249,46311,19511,98013,608.2615,127.9016,817.2418,695.2320,782.93
Capital Expenditure -728-708-814-1,097-371-1,097.12-1,219.63-1,355.83-1,507.24-1,675.55
Free Cash Flow 7,4556,5168,64910,09811,60912,511.1513,908.2715,461.4117,187.9919,107.38
WACC
PV LFCF 11,458.1411,665.6111,876.8312,091.8712,310.81
SUM PV LFCF 59,403.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.19
Free cash flow (t + 1) 19,489.52
Terminal Value 271,064.32
Present Value of Terminal Value 174,645.75

Intrinsic Value

Enterprise Value 234,049.02
Net Debt 7,093
Equity Value 226,956.02
Shares Outstanding 946
Equity Value Per Share 239.91