Discounted Cash Flow (DCF) Analysis Levered

T. Rowe Price Group, Inc. (TROW)

$111.54

-1.72 (-1.52%)
All numbers are in Millions, Currency in USD
Stock DCF: 166.61 | 111.54 | 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 4,7935,372.605,617.906,206.707,671.908,645.199,741.9710,977.8812,370.5813,939.98
Revenue (%)
Operating Cash Flow 229.501,619.901,522.701,918.903,4522,385.312,687.923,028.923,413.193,846.20
Operating Cash Flow (%)
Capital Expenditure -186.10-168.50-204.60-214.60-239-297.98-335.78-378.38-426.38-480.48
Capital Expenditure (%)
Free Cash Flow 43.401,451.401,318.101,704.303,2132,087.332,352.142,650.542,986.803,365.72

Weighted Average Cost Of Capital

Share price $ 111.54
Beta 1.304
Diluted Shares Outstanding 231.20
Cost of Debt
Tax Rate 22.82
After-tax Cost of Debt 3.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.916
Total Debt -
Total Equity 25,788.05
Total Capital 25,788.05
Debt Weighting 0.00
Equity Weighting 100.00
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 4,7935,372.605,617.906,206.707,671.908,645.199,741.9710,977.8812,370.5813,939.98
Operating Cash Flow 229.501,619.901,522.701,918.903,4522,385.312,687.923,028.923,413.193,846.20
Capital Expenditure -186.10-168.50-204.60-214.60-239-297.98-335.78-378.38-426.38-480.48
Free Cash Flow 43.401,451.401,318.101,704.303,2132,087.332,352.142,650.542,986.803,365.72
WACC
PV LFCF 1,898.951,946.751,995.742,045.972,097.47
SUM PV LFCF 9,984.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.92
Free cash flow (t + 1) 3,433.04
Terminal Value 43,346.44
Present Value of Terminal Value 27,012.81

Intrinsic Value

Enterprise Value 36,997.69
Net Debt -1,523.10
Equity Value 38,520.79
Shares Outstanding 231.20
Equity Value Per Share 166.61