Discounted Cash Flow (DCF) Analysis Levered

Nielsen Holdings plc (NLSN)

$27.98

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: -7.25 | 27.98 | 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 6,5726,5156,4986,2903,5003,0742,699.862,371.252,082.631,829.15
Revenue (%)
Operating Cash Flow 1,3101,0581,066999666537.88472.41414.91364.41320.06
Operating Cash Flow (%)
Capital Expenditure -489-520-519-519-341-254.55-223.57-196.36-172.46-151.47
Capital Expenditure (%)
Free Cash Flow 821538547480325283.33248.85218.56191.96168.59

Weighted Average Cost Of Capital

Share price $ 27.98
Beta 1.178
Diluted Shares Outstanding 360.45
Cost of Debt
Tax Rate -0.36
After-tax Cost of Debt 4.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.102
Total Debt 5,752
Total Equity 10,085.41
Total Capital 15,837.41
Debt Weighting 36.32
Equity Weighting 63.68
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 6,5726,5156,4986,2903,5003,0742,699.862,371.252,082.631,829.15
Operating Cash Flow 1,3101,0581,066999666537.88472.41414.91364.41320.06
Capital Expenditure -489-520-519-519-341-254.55-223.57-196.36-172.46-151.47
Free Cash Flow 821538547480325283.33248.85218.56191.96168.59
WACC
PV LFCF 261.79212.44172.39139.90113.53
SUM PV LFCF 900.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.23
Free cash flow (t + 1) 171.97
Terminal Value 2,760.27
Present Value of Terminal Value 1,858.72

Intrinsic Value

Enterprise Value 2,758.77
Net Debt 5,372
Equity Value -2,613.23
Shares Outstanding 360.45
Equity Value Per Share -7.25