Discounted Cash Flow (DCF) Analysis Levered
Mastercard Incorporated (MA)
$371.12
-2.91 (-0.78%)
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 | 12,497 | 14,950 | 16,883 | 15,301 | 18,884 | 21,084.22 | 23,540.78 | 26,283.57 | 29,345.93 | 32,765.09 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,555 | 6,223 | 8,183 | 7,224 | 9,463 | 9,777.54 | 10,916.75 | 12,188.68 | 13,608.81 | 15,194.40 |
| 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 | 5,132 | 5,719 | 7,455 | 6,516 | 8,649 | 8,933.93 | 9,974.84 | 11,137.03 | 12,434.63 | 13,883.42 |
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 | 12,497 | 14,950 | 16,883 | 15,301 | 18,884 | 21,084.22 | 23,540.78 | 26,283.57 | 29,345.93 | 32,765.09 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,555 | 6,223 | 8,183 | 7,224 | 9,463 | 9,777.54 | 10,916.75 | 12,188.68 | 13,608.81 | 15,194.40 |
| Capital Expenditure | -423 | -504 | -728 | -708 | -814 | -843.61 | -941.90 | -1,051.65 | -1,174.17 | -1,310.98 |
| Free Cash Flow | 5,132 | 5,719 | 7,455 | 6,516 | 8,649 | 8,933.93 | 9,974.84 | 11,137.03 | 12,434.63 | 13,883.42 |
| WACC | ||||||||||
| PV LFCF | 8,237.83 | 8,481 | 8,731.34 | 8,989.07 | 9,254.41 | |||||
| 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 |