Discounted Cash Flow (DCF) Analysis Levered

T. Rowe Price Group, Inc. (TROW)

$110.99

+0.09 (+0.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 101.10 | 110.99 | 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 5,617.906,206.707,671.906,488.406,460.506,754.967,062.837,384.747,721.328,073.24
Revenue (%)
Operating Cash Flow 1,522.701,918.903,4522,359.401,219.102,137.942,235.382,337.272,443.792,555.18
Operating Cash Flow (%)
Capital Expenditure -204.60-214.60-239.10-237.60-224.15-234.36-245.04-256.21-267.89-280.10
Capital Expenditure (%)
Free Cash Flow 1,318.101,704.303,212.902,121.80994.951,903.581,990.342,081.052,175.902,275.08

Weighted Average Cost Of Capital

Share price $ 110.99
Beta 1.411
Diluted Shares Outstanding 224.80
Cost of Debt
Tax Rate 29.96
After-tax Cost of Debt 67.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.945
Total Debt 329.60
Total Equity 24,950.55
Total Capital 25,280.15
Debt Weighting 1.30
Equity Weighting 98.70
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 5,617.906,206.707,671.906,488.406,460.506,754.967,062.837,384.747,721.328,073.24
Operating Cash Flow 1,522.701,918.903,4522,359.401,219.102,137.942,235.382,337.272,443.792,555.18
Capital Expenditure -204.60-214.60-239.10-237.60-224.15-234.36-245.04-256.21-267.89-280.10
Free Cash Flow 1,318.101,704.303,212.902,121.80994.951,903.581,990.342,081.052,175.902,275.08
WACC
PV LFCF 1,704.491,595.791,494.021,398.741,309.54
SUM PV LFCF 7,502.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.68
Free cash flow (t + 1) 2,320.58
Terminal Value 23,972.92
Present Value of Terminal Value 13,798.88

Intrinsic Value

Enterprise Value 21,301.47
Net Debt -1,426
Equity Value 22,727.47
Shares Outstanding 224.80
Equity Value Per Share 101.10