Discounted Cash Flow (DCF) Analysis Levered

Morgan Stanley (MS)

$83.95

-1.89 (-2.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 138.41 | 83.95 | undervalue

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 37,71438,92645,26956,41450,21054,368.7658,871.9763,748.1869,028.2774,745.69
Revenue (%)
Operating Cash Flow 7,30540,773-25,23133,971-6,39712,597.8413,641.2814,771.1515,994.6117,319.40
Operating Cash Flow (%)
Capital Expenditure -1,865-1,826-1,444-2,308-2,123.51-2,299.40-2,489.85-2,696.08-2,919.39-3,161.19
Capital Expenditure (%)
Free Cash Flow 5,44038,947-26,67531,663-8,520.5210,298.4411,151.4312,075.0713,075.2214,158.20

Weighted Average Cost Of Capital

Share price $ 83.95
Beta 1.349
Diluted Shares Outstanding 1,814
Cost of Debt
Tax Rate 21.72
After-tax Cost of Debt 3.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.747
Total Debt -
Total Equity 152,285.30
Total Capital 152,285.30
Debt Weighting 0.00
Equity Weighting 100.00
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 37,71438,92645,26956,41450,21054,368.7658,871.9763,748.1869,028.2774,745.69
Operating Cash Flow 7,30540,773-25,23133,971-6,39712,597.8413,641.2814,771.1515,994.6117,319.40
Capital Expenditure -1,865-1,826-1,444-2,308-2,123.51-2,299.40-2,489.85-2,696.08-2,919.39-3,161.19
Free Cash Flow 5,44038,947-26,67531,663-8,520.5210,298.4411,151.4312,075.0713,075.2214,158.20
WACC
PV LFCF 7,790.367,686.217,583.457,482.077,382.04
SUM PV LFCF 45,679.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.75
Free cash flow (t + 1) 14,441.37
Terminal Value 186,340.20
Present Value of Terminal Value 117,026.42

Intrinsic Value

Enterprise Value 162,706.28
Net Debt -88,362
Equity Value 251,068.28
Shares Outstanding 1,814
Equity Value Per Share 138.41