Discounted Cash Flow (DCF) Analysis Levered

S&P Global Inc. (SPGI)

$438.27

+3.05 (+0.70%)
All numbers are in Millions, Currency in USD
Stock DCF: 335.03 | 438.27 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 6,6997,4428,29711,18112,49714,656.1617,188.3620,158.0623,640.8427,725.37
Revenue (%)
Operating Cash Flow 2,7763,5673,5982,6033,7105,443.376,383.847,486.808,780.3310,297.34
Operating Cash Flow (%)
Capital Expenditure -115-76-35-89-143-149.49-175.32-205.61-241.14-282.80
Capital Expenditure (%)
Free Cash Flow 2,6613,4913,5632,5143,5675,293.876,208.527,281.198,539.1910,014.54

Weighted Average Cost Of Capital

Share price $ 438.27
Beta 1.179
Diluted Shares Outstanding 318.90
Cost of Debt
Tax Rate 28.47
After-tax Cost of Debt 3.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.850
Total Debt 12,000
Total Equity 139,764.30
Total Capital 151,764.30
Debt Weighting 7.91
Equity Weighting 92.09
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 6,6997,4428,29711,18112,49714,656.1617,188.3620,158.0623,640.8427,725.37
Operating Cash Flow 2,7763,5673,5982,6033,7105,443.376,383.847,486.808,780.3310,297.34
Capital Expenditure -115-76-35-89-143-149.49-175.32-205.61-241.14-282.80
Free Cash Flow 2,6613,4913,5632,5143,5675,293.876,208.527,281.198,539.1910,014.54
WACC
PV LFCF 4,842.995,195.995,574.715,981.046,416.99
SUM PV LFCF 28,011.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.31
Free cash flow (t + 1) 10,214.83
Terminal Value 139,737.73
Present Value of Terminal Value 89,539.41

Intrinsic Value

Enterprise Value 117,551.14
Net Debt 10,710
Equity Value 106,841.14
Shares Outstanding 318.90
Equity Value Per Share 335.03