Discounted Cash Flow (DCF) Analysis Levered

Northern Trust Corporation (NTRS)

$87.6116

+0.86 (+0.99%)
All numbers are in Millions, Currency in USD
Stock DCF: 345.85 | 87.6116 | 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 5,220.805,298.605,337.706,464.506,761.207,233.277,738.298,278.588,856.599,474.96
Revenue (%)
Operating Cash Flow 1,767.502,5921,896.801,3562,392.402,526.872,703.292,892.043,093.963,309.98
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 1,261.501,992.201,336.40840.901,725.091,812.961,939.542,074.962,219.842,374.82

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 5,220.805,298.605,337.706,464.506,761.207,233.277,738.298,278.588,856.599,474.96
Operating Cash Flow 1,767.502,5921,896.801,3562,392.402,526.872,703.292,892.043,093.963,309.98
Capital Expenditure -506-599.80-560.40-515.10-667.31-713.91-763.75-817.08-874.12-935.16
Free Cash Flow 1,261.501,992.201,336.40840.901,725.091,812.961,939.542,074.962,219.842,374.82
WACC
PV LFCF 1,684.281,673.991,663.751,653.581,643.47
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