Discounted Cash Flow (DCF) Analysis Levered

RELX PLC (RELX)

$28.18

+0.79 (+2.88%)
All numbers are in Millions, Currency in USD
Stock DCF: 16.63 | 28.18 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 7,3557,4927,8747,1107,2447,228.497,2137,197.567,182.147,166.76
Revenue (%)
Operating Cash Flow 1,8481,9852,0891,5962,0161,856.681,852.711,848.741,844.781,840.83
Operating Cash Flow (%)
Capital Expenditure -354-362-380-362-337-350.07-349.32-348.57-347.82-347.08
Capital Expenditure (%)
Free Cash Flow 1,4941,6231,7091,2341,6791,506.621,503.391,500.171,496.961,493.75

Weighted Average Cost Of Capital

Share price $ 28.18
Beta 0.502
Diluted Shares Outstanding 1,939.40
Cost of Debt
Tax Rate 18.14
After-tax Cost of Debt 1.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.074
Total Debt 6,167
Total Equity 54,652.29
Total Capital 60,819.29
Debt Weighting 10.14
Equity Weighting 89.86
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 7,3557,4927,8747,1107,2447,228.497,2137,197.567,182.147,166.76
Operating Cash Flow 1,8481,9852,0891,5962,0161,856.681,852.711,848.741,844.781,840.83
Capital Expenditure -354-362-380-362-337-350.07-349.32-348.57-347.82-347.08
Free Cash Flow 1,4941,6231,7091,2341,6791,506.621,503.391,500.171,496.961,493.75
WACC
PV LFCF 1,426.311,347.401,272.851,202.431,135.90
SUM PV LFCF 6,384.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.63
Free cash flow (t + 1) 1,523.63
Terminal Value 41,973.14
Present Value of Terminal Value 31,917.96

Intrinsic Value

Enterprise Value 38,302.86
Net Debt 6,054
Equity Value 32,248.86
Shares Outstanding 1,939.40
Equity Value Per Share 16.63