Discounted Cash Flow (DCF) Analysis Levered

Polycab India Limited (POLYCAB.NS)

2813.25 ₹

+14.90 (+0.53%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,757.81 | 2813.25 | overvalue

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 66,445.2378,264.5886,128.7386,892.01120,047.32140,119.05163,546.74190,891.51222,808.28260,061.48
Revenue (%)
Operating Cash Flow 3,631.8812,299.562,446.3512,382.185,116.1111,919.5113,912.4316,238.5718,953.6322,122.65
Operating Cash Flow (%)
Capital Expenditure -1,992.30-2,860.68-2,901.30-1,934.94-5,266.93-4,662.13-5,441.63-6,351.47-7,413.42-8,652.93
Capital Expenditure (%)
Free Cash Flow 1,639.589,438.88-454.9510,447.24-150.827,257.388,470.809,887.1011,540.2113,469.72

Weighted Average Cost Of Capital

Share price $ 2,813.25
Beta 0.621
Diluted Shares Outstanding 149.92
Cost of Debt
Tax Rate 18.58
After-tax Cost of Debt 11.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.496
Total Debt 1,181.48
Total Equity 421,771.28
Total Capital 422,952.76
Debt Weighting 0.28
Equity Weighting 99.72
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 66,445.2378,264.5886,128.7386,892.01120,047.32140,119.05163,546.74190,891.51222,808.28260,061.48
Operating Cash Flow 3,631.8812,299.562,446.3512,382.185,116.1111,919.5113,912.4316,238.5718,953.6322,122.65
Capital Expenditure -1,992.30-2,860.68-2,901.30-1,934.94-5,266.93-4,662.13-5,441.63-6,351.47-7,413.42-8,652.93
Free Cash Flow 1,639.589,438.88-454.9510,447.24-150.827,257.388,470.809,887.1011,540.2113,469.72
WACC
PV LFCF 6,813.807,466.958,182.728,967.109,826.67
SUM PV LFCF 41,257.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.51
Free cash flow (t + 1) 13,739.11
Terminal Value 304,636.58
Present Value of Terminal Value 222,244.04

Intrinsic Value

Enterprise Value 263,501.29
Net Debt -35.43
Equity Value 263,536.72
Shares Outstanding 149.92
Equity Value Per Share 1,757.81