Discounted Cash Flow (DCF) Analysis Levered

Mastercard Incorporated (MA)

$371.12

-2.91 (-0.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 182.47 | 371.12 | overvalue

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 12,49714,95016,88315,30118,88421,084.2223,540.7826,283.5729,345.9332,765.09
Revenue (%)
Operating Cash Flow 5,5556,2238,1837,2249,4639,777.5410,916.7512,188.6813,608.8115,194.40
Operating Cash Flow (%)
Capital Expenditure -423-504-728-708-814-843.61-941.90-1,051.65-1,174.17-1,310.98
Capital Expenditure (%)
Free Cash Flow 5,1325,7197,4556,5168,6498,933.939,974.8411,137.0312,434.6313,883.42

Weighted Average Cost Of Capital

Share price $ 371.12
Beta 1.084
Diluted Shares Outstanding 1,006
Cost of Debt
Tax Rate 15.72
After-tax Cost of Debt 2.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.666
Total Debt 13,901
Total Equity 373,346.72
Total Capital 387,247.72
Debt Weighting 3.59
Equity Weighting 96.41
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 12,49714,95016,88315,30118,88421,084.2223,540.7826,283.5729,345.9332,765.09
Operating Cash Flow 5,5556,2238,1837,2249,4639,777.5410,916.7512,188.6813,608.8115,194.40
Capital Expenditure -423-504-728-708-814-843.61-941.90-1,051.65-1,174.17-1,310.98
Free Cash Flow 5,1325,7197,4556,5168,6498,933.939,974.8411,137.0312,434.6313,883.42
WACC
PV LFCF 8,237.838,4818,731.348,989.079,254.41
SUM PV LFCF 43,693.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.45
Free cash flow (t + 1) 14,161.09
Terminal Value 219,551.76
Present Value of Terminal Value 146,348.79

Intrinsic Value

Enterprise Value 190,042.44
Net Debt 6,480
Equity Value 183,562.44
Shares Outstanding 1,006
Equity Value Per Share 182.47