Discounted Cash Flow (DCF) Analysis Levered

The Toronto-Dominion Bank (TD)

$61.33

-0.64 (-1.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 668.67 | 61.33 | undervalue

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 35,83538,52839,74343,28442,26644,086.2345,984.8447,965.2250,030.8952,185.52
Revenue (%)
Operating Cash Flow 34,8705,693271231,78650,12967,616.7470,528.7373,566.1176,734.3180,038.95
Operating Cash Flow (%)
Capital Expenditure -434-587-794-1,757-1,129-1,010.71-1,054.24-1,099.64-1,147-1,196.40
Capital Expenditure (%)
Free Cash Flow 34,4365,106-523230,02949,00066,606.0369,474.4872,466.4775,587.3178,842.55

Weighted Average Cost Of Capital

Share price $ 61.33
Beta 0.882
Diluted Shares Outstanding 1,820.20
Cost of Debt
Tax Rate 16.55
After-tax Cost of Debt 10.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.969
Total Debt 45,470
Total Equity 111,632.87
Total Capital 157,102.87
Debt Weighting 28.94
Equity Weighting 71.06
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 35,83538,52839,74343,28442,26644,086.2345,984.8447,965.2250,030.8952,185.52
Operating Cash Flow 34,8705,693271231,78650,12967,616.7470,528.7373,566.1176,734.3180,038.95
Capital Expenditure -434-587-794-1,757-1,129-1,010.71-1,054.24-1,099.64-1,147-1,196.40
Free Cash Flow 34,4365,106-523230,02949,00066,606.0369,474.4872,466.4775,587.3178,842.55
WACC
PV LFCF 61,354.1258,950.2556,640.5754,421.3852,289.14
SUM PV LFCF 283,655.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.56
Free cash flow (t + 1) 80,419.40
Terminal Value 1,225,905.49
Present Value of Terminal Value 813,032.33

Intrinsic Value

Enterprise Value 1,096,687.79
Net Debt -120,423
Equity Value 1,217,110.79
Shares Outstanding 1,820.20
Equity Value Per Share 668.67