Discounted Cash Flow (DCF) Analysis Levered

The Procter & Gamble Company (PG)

$141.01

+0.44 (+0.31%)
All numbers are in Millions, Currency in USD
Stock DCF: 197.81 | 141.01 | 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 66,83267,68470,95076,11880,18783,941.7387,872.2791,986.8596,294.10100,803.04
Revenue (%)
Operating Cash Flow 14,86715,24217,40318,37116,72319,186.2520,084.6321,025.0922,009.5823,040.17
Operating Cash Flow (%)
Capital Expenditure -3,717-3,347-3,073-2,787-3,156-3,766.50-3,942.86-4,127.48-4,320.75-4,523.07
Capital Expenditure (%)
Free Cash Flow 11,15011,89514,33015,58413,56715,419.7516,141.7716,897.6117,688.8318,517.10

Weighted Average Cost Of Capital

Share price $ 141.01
Beta 0.431
Diluted Shares Outstanding 2,539.10
Cost of Debt
Tax Rate 18.08
After-tax Cost of Debt 1.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.587
Total Debt 32,293
Total Equity 358,038.49
Total Capital 390,331.49
Debt Weighting 8.27
Equity Weighting 91.73
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 66,83267,68470,95076,11880,18783,941.7387,872.2791,986.8596,294.10100,803.04
Operating Cash Flow 14,86715,24217,40318,37116,72319,186.2520,084.6321,025.0922,009.5823,040.17
Capital Expenditure -3,717-3,347-3,073-2,787-3,156-3,766.50-3,942.86-4,127.48-4,320.75-4,523.07
Free Cash Flow 11,15011,89514,33015,58413,56715,419.7516,141.7716,897.6117,688.8318,517.10
WACC
PV LFCF 14,654.7714,579.9014,505.4214,431.3214,357.59
SUM PV LFCF 72,529

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.22
Free cash flow (t + 1) 18,887.45
Terminal Value 586,566.62
Present Value of Terminal Value 454,805.66

Intrinsic Value

Enterprise Value 527,334.66
Net Debt 25,079
Equity Value 502,255.66
Shares Outstanding 2,539.10
Equity Value Per Share 197.81