Discounted Cash Flow (DCF) Analysis Levered

Precot Limited (PRECOT.NS)

171.5 ₹

-0.30 (-0.17%)

All numbers are in Millions, Currency in USD

Stock DCF: 510.89 | 171.5 | 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	6,830.60	7,599.99	6,994.95	6,460	9,546.60	10,583.25	11,732.47	13,006.47	14,418.82	15,984.54
Revenue (%)
Operating Cash Flow	107.48	730.36	534.22	260	555.30	606.68	672.56	745.59	826.55	916.31
Operating Cash Flow (%)
Capital Expenditure	-75.76	-122.87	-101.80	-114.60	-568.10	-252.01	-279.37	-309.71	-343.34	-380.62
Capital Expenditure (%)
Free Cash Flow	31.72	607.49	432.43	145.40	-12.80	354.67	393.19	435.88	483.21	535.68

Weighted Average Cost Of Capital

Share price	$ 171.5
Beta	0.910
Diluted Shares Outstanding	12
Cost of Debt
Tax Rate	21.18
After-tax Cost of Debt	6.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.931
Total Debt	3,597.10
Total Equity	2,058
Total Capital	5,655.10
Debt Weighting	63.61
Equity Weighting	36.39
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	6,830.60	7,599.99	6,994.95	6,460	9,546.60	10,583.25	11,732.47	13,006.47	14,418.82	15,984.54
Operating Cash Flow	107.48	730.36	534.22	260	555.30	606.68	672.56	745.59	826.55	916.31
Capital Expenditure	-75.76	-122.87	-101.80	-114.60	-568.10	-252.01	-279.37	-309.71	-343.34	-380.62
Free Cash Flow	31.72	607.49	432.43	145.40	-12.80	354.67	393.19	435.88	483.21	535.68
WACC
PV LFCF						290.09	300.75	311.80	323.25	335.13
SUM PV LFCF										1,784.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.93
Free cash flow (t + 1)	546.40
Terminal Value	11,083.10
Present Value of Terminal Value	7,928

Intrinsic Value

Enterprise Value	9,712.86
Net Debt	3,582.20
Equity Value	6,130.66
Shares Outstanding	12
Equity Value Per Share	510.89