Discounted Cash Flow (DCF) Analysis Levered

NCR Corporation (NCR)

$25.14

+0.22 (+0.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 66.61 | 25.14 | 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	6,405	6,915	6,207	7,156	7,844	8,287.72	8,756.55	9,251.89	9,775.26	10,328.23
Revenue (%)
Operating Cash Flow	536	604	641	1,077	447	798.59	843.76	891.50	941.93	995.21
Operating Cash Flow (%)
Capital Expenditure	-313	-329	-263	-348	-377	-390.37	-412.45	-435.78	-460.43	-486.48
Capital Expenditure (%)
Free Cash Flow	223	275	378	729	70	408.22	431.31	455.71	481.49	508.73

Weighted Average Cost Of Capital

Share price	$ 25.14
Beta	1.647
Diluted Shares Outstanding	141.20
Cost of Debt
Tax Rate	71.56
After-tax Cost of Debt	1.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.521
Total Debt	6,018
Total Equity	3,549.77
Total Capital	9,567.77
Debt Weighting	62.90
Equity Weighting	37.10
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	6,405	6,915	6,207	7,156	7,844	8,287.72	8,756.55	9,251.89	9,775.26	10,328.23
Operating Cash Flow	536	604	641	1,077	447	798.59	843.76	891.50	941.93	995.21
Capital Expenditure	-313	-329	-263	-348	-377	-390.37	-412.45	-435.78	-460.43	-486.48
Free Cash Flow	223	275	378	729	70	408.22	431.31	455.71	481.49	508.73
WACC
PV LFCF						388.34	390.32	392.32	394.32	396.33
SUM PV LFCF										1,961.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.12
Free cash flow (t + 1)	518.90
Terminal Value	16,631.52
Present Value of Terminal Value	12,957.02

Intrinsic Value

Enterprise Value	14,918.65
Net Debt	5,513
Equity Value	9,405.65
Shares Outstanding	141.20
Equity Value Per Share	66.61