Discounted Cash Flow (DCF) Analysis Levered

Publicis Groupe S.A. (PUB.PA)

71.02 €

+0.98 (+1.40%)

All numbers are in Millions, Currency in USD

Stock DCF: 316.67 | 71.02 | 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	9,951	11,001	10,788	11,738	14,196	15,557.47	17,049.52	18,684.66	20,476.61	22,440.43
Revenue (%)
Operating Cash Flow	1,942	2,342	2,966	1,792	2,417	3,129.87	3,430.05	3,759	4,119.51	4,514.60
Operating Cash Flow (%)
Capital Expenditure	-207	-232	-167	-139	-198	-258.75	-283.57	-310.77	-340.57	-373.23
Capital Expenditure (%)
Free Cash Flow	1,735	2,110	2,799	1,653	2,219	2,871.12	3,146.48	3,448.24	3,778.94	4,141.37

Weighted Average Cost Of Capital

Share price	$ 71.02
Beta	0.949
Diluted Shares Outstanding	253.61
Cost of Debt
Tax Rate	26.07
After-tax Cost of Debt	-1.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.216
Total Debt	6,173
Total Equity	18,011.04
Total Capital	24,184.04
Debt Weighting	25.53
Equity Weighting	74.47
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	9,951	11,001	10,788	11,738	14,196	15,557.47	17,049.52	18,684.66	20,476.61	22,440.43
Operating Cash Flow	1,942	2,342	2,966	1,792	2,417	3,129.87	3,430.05	3,759	4,119.51	4,514.60
Capital Expenditure	-207	-232	-167	-139	-198	-258.75	-283.57	-310.77	-340.57	-373.23
Free Cash Flow	1,735	2,110	2,799	1,653	2,219	2,871.12	3,146.48	3,448.24	3,778.94	4,141.37
WACC
PV LFCF						2,694.62	2,771.52	2,850.61	2,931.95	3,015.62
SUM PV LFCF										14,264.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.55
Free cash flow (t + 1)	4,224.19
Terminal Value	92,839.39
Present Value of Terminal Value	67,602.85

Intrinsic Value

Enterprise Value	81,867.16
Net Debt	1,557
Equity Value	80,310.16
Shares Outstanding	253.61
Equity Value Per Share	316.67