Discounted Cash Flow (DCF) Analysis Levered

TransDigm Group Incorporated (TDG)

$970.27

+7.40 (+0.77%)

All numbers are in Millions, Currency in USD

Stock DCF: 353.42 | 970.27 | 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	5,223.20	5,103	4,798	5,429	6,585	7,015.76	7,474.70	7,963.66	8,484.61	9,039.63
Revenue (%)
Operating Cash Flow	1,015.47	1,213	913	948	1,375	1,411.34	1,503.66	1,602.02	1,706.82	1,818.47
Operating Cash Flow (%)
Capital Expenditure	-101.59	-105	-105	-119	-139	-147.24	-156.88	-167.14	-178.07	-189.72
Capital Expenditure (%)
Free Cash Flow	913.88	1,108	808	829	1,236	1,264.09	1,346.78	1,434.88	1,528.75	1,628.75

Weighted Average Cost Of Capital

Share price	$ 970.27
Beta	1.391
Diluted Shares Outstanding	57.20
Cost of Debt
Tax Rate	24.36
After-tax Cost of Debt	3.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.722
Total Debt	-
Total Equity	55,499.44
Total Capital	55,499.44
Debt Weighting	0.00
Equity Weighting	100.00
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	5,223.20	5,103	4,798	5,429	6,585	7,015.76	7,474.70	7,963.66	8,484.61	9,039.63
Operating Cash Flow	1,015.47	1,213	913	948	1,375	1,411.34	1,503.66	1,602.02	1,706.82	1,818.47
Capital Expenditure	-101.59	-105	-105	-119	-139	-147.24	-156.88	-167.14	-178.07	-189.72
Free Cash Flow	913.88	1,108	808	829	1,236	1,264.09	1,346.78	1,434.88	1,528.75	1,628.75
WACC
PV LFCF						1,141.70	1,098.61	1,057.15	1,017.26	978.87
SUM PV LFCF										5,293.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.72
Free cash flow (t + 1)	1,661.32
Terminal Value	19,051.89
Present Value of Terminal Value	11,450.06

Intrinsic Value

Enterprise Value	16,743.65
Net Debt	-3,472
Equity Value	20,215.65
Shares Outstanding	57.20
Equity Value Per Share	353.42