Discounted Cash Flow (DCF) Analysis Levered
Northern Trust Corporation (NTRS)
$87.6116
+0.86 (+0.99%)
All numbers are in Millions, Currency in USD
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 | 5,220.80 | 5,298.60 | 5,337.70 | 6,464.50 | 6,761.20 | 7,233.27 | 7,738.29 | 8,278.58 | 8,856.59 | 9,474.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,767.50 | 2,592 | 1,896.80 | 1,356 | 2,392.40 | 2,526.87 | 2,703.29 | 2,892.04 | 3,093.96 | 3,309.98 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -506 | -599.80 | -560.40 | -515.10 | -667.31 | -713.91 | -763.75 | -817.08 | -874.12 | -935.16 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,261.50 | 1,992.20 | 1,336.40 | 840.90 | 1,725.09 | 1,812.96 | 1,939.54 | 2,074.96 | 2,219.84 | 2,374.82 |
Weighted Average Cost Of Capital
| Share price | $ 87.6,116 |
|---|---|
| Beta | 1.101 |
| Diluted Shares Outstanding | 209.01 |
| Cost of Debt | |
| Tax Rate | 24.36 |
| After-tax Cost of Debt | 6.05% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.710 |
| Total Debt | 12,382.70 |
| Total Equity | 18,311.53 |
| Total Capital | 30,694.23 |
| Debt Weighting | 40.34 |
| Equity Weighting | 59.66 |
| 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 | 5,220.80 | 5,298.60 | 5,337.70 | 6,464.50 | 6,761.20 | 7,233.27 | 7,738.29 | 8,278.58 | 8,856.59 | 9,474.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,767.50 | 2,592 | 1,896.80 | 1,356 | 2,392.40 | 2,526.87 | 2,703.29 | 2,892.04 | 3,093.96 | 3,309.98 |
| Capital Expenditure | -506 | -599.80 | -560.40 | -515.10 | -667.31 | -713.91 | -763.75 | -817.08 | -874.12 | -935.16 |
| Free Cash Flow | 1,261.50 | 1,992.20 | 1,336.40 | 840.90 | 1,725.09 | 1,812.96 | 1,939.54 | 2,074.96 | 2,219.84 | 2,374.82 |
| WACC | ||||||||||
| PV LFCF | 1,684.28 | 1,673.99 | 1,663.75 | 1,653.58 | 1,643.47 | |||||
| SUM PV LFCF | 8,319.08 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.64 |
| Free cash flow (t + 1) | 2,422.32 |
| Terminal Value | 42,948.95 |
| Present Value of Terminal Value | 29,722.41 |
Intrinsic Value
| Enterprise Value | 38,041.49 |
|---|---|
| Net Debt | -34,243 |
| Equity Value | 72,284.49 |
| Shares Outstanding | 209.01 |
| Equity Value Per Share | 345.85 |