Discounted Cash Flow (DCF) Analysis Levered

Thomson Reuters Corporation (TRI)

$114.4

+0.35 (+0.31%)

All numbers are in Millions, Currency in USD

Stock DCF: 122.46 | 114.4 | 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	5,297	5,501	5,906	5,984	6,348	6,643.45	6,952.66	7,276.25	7,614.91	7,969.33
Revenue (%)
Operating Cash Flow	2,029	2,062	702	1,745	1,773	1,923.49	2,013.02	2,106.71	2,204.76	2,307.38
Operating Cash Flow (%)
Capital Expenditure	-950	-576	-505	-504	-487	-704.87	-737.68	-772.01	-807.95	-845.55
Capital Expenditure (%)
Free Cash Flow	1,079	1,486	197	1,241	1,286	1,218.62	1,275.34	1,334.70	1,396.82	1,461.83

Weighted Average Cost Of Capital

Share price	$ 114.4
Beta	0.268
Diluted Shares Outstanding	498.03
Cost of Debt
Tax Rate	-439.75
After-tax Cost of Debt	5.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.032
Total Debt	3,786
Total Equity	56,974.86
Total Capital	60,760.86
Debt Weighting	6.23
Equity Weighting	93.77
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	5,297	5,501	5,906	5,984	6,348	6,643.45	6,952.66	7,276.25	7,614.91	7,969.33
Operating Cash Flow	2,029	2,062	702	1,745	1,773	1,923.49	2,013.02	2,106.71	2,204.76	2,307.38
Capital Expenditure	-950	-576	-505	-504	-487	-704.87	-737.68	-772.01	-807.95	-845.55
Free Cash Flow	1,079	1,486	197	1,241	1,286	1,218.62	1,275.34	1,334.70	1,396.82	1,461.83
WACC
PV LFCF						1,080.23	1,085.98	1,091.76	1,097.58	1,103.42
SUM PV LFCF										5,915.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.10
Free cash flow (t + 1)	1,491.06
Terminal Value	71,003.08
Present Value of Terminal Value	58,079.59

Intrinsic Value

Enterprise Value	63,995.38
Net Debt	3,008
Equity Value	60,987.38
Shares Outstanding	498.03
Equity Value Per Share	122.46