Discounted Cash Flow (DCF) Analysis Levered

TransDigm Group Incorporated (TDG)

$540.51

-14.19 (-2.56%)
All numbers are in Millions, Currency in USD
Stock DCF: 105.05 | 540.51 | 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 3,504.293,811.135,223.205,1034,7985,248.165,740.576,279.176,868.307,512.71
Revenue (%)
Operating Cash Flow 788.731,022.171,015.471,2139131,171.071,280.941,401.121,532.581,676.37
Operating Cash Flow (%)
Capital Expenditure -71.01-73.34-101.59-105-105-106.45-116.44-127.36-139.31-152.39
Capital Expenditure (%)
Free Cash Flow 717.72948.83913.881,1088081,064.611,164.501,273.761,393.261,523.99

Weighted Average Cost Of Capital

Share price $ 540.51
Beta 1.436
Diluted Shares Outstanding 58.40
Cost of Debt
Tax Rate 4.90
After-tax Cost of Debt 5.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.474
Total Debt 20,018
Total Equity 31,565.78
Total Capital 51,583.78
Debt Weighting 38.81
Equity Weighting 61.19
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 3,504.293,811.135,223.205,1034,7985,248.165,740.576,279.176,868.307,512.71
Operating Cash Flow 788.731,022.171,015.471,2139131,171.071,280.941,401.121,532.581,676.37
Capital Expenditure -71.01-73.34-101.59-105-105-106.45-116.44-127.36-139.31-152.39
Free Cash Flow 717.72948.83913.881,1088081,064.611,164.501,273.761,393.261,523.99
WACC
PV LFCF 982.48991.751,001.101,010.551,020.08
SUM PV LFCF 5,005.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.36
Free cash flow (t + 1) 1,554.47
Terminal Value 24,441.27
Present Value of Terminal Value 16,359.83

Intrinsic Value

Enterprise Value 21,365.80
Net Debt 15,231
Equity Value 6,134.80
Shares Outstanding 58.40
Equity Value Per Share 105.05