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	6,572	6,515	6,498	6,290	3,500	3,074	2,699.86	2,371.25	2,082.63	1,829.15
Revenue (%)
Operating Cash Flow	1,310	1,058	1,066	999	666	537.88	472.41	414.91	364.41	320.06
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	821	538	547	480	325	283.33	248.85	218.56	191.96	168.59

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	6,572	6,515	6,498	6,290	3,500	3,074	2,699.86	2,371.25	2,082.63	1,829.15
Operating Cash Flow	1,310	1,058	1,066	999	666	537.88	472.41	414.91	364.41	320.06
Capital Expenditure	-489	-520	-519	-519	-341	-254.55	-223.57	-196.36	-172.46	-151.47
Free Cash Flow	821	538	547	480	325	283.33	248.85	218.56	191.96	168.59
WACC
PV LFCF						261.79	212.44	172.39	139.90	113.53
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