Discounted Cash Flow (DCF) Analysis Levered
T. Rowe Price Group, Inc. (TROW)
$102.45
+2.32 (+2.32%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 5,372.60 | 5,617.90 | 6,206.70 | 7,671.90 | 6,488.40 | 6,865.16 | 7,263.80 | 7,685.59 | 8,131.87 | 8,604.07 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,619.90 | 1,522.70 | 1,918.90 | 3,452 | 2,359.40 | 2,327.71 | 2,462.88 | 2,605.89 | 2,757.21 | 2,917.31 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -168.50 | -204.60 | -214.60 | -239.10 | -237.60 | -233.61 | -247.18 | -261.53 | -276.72 | -292.78 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,451.40 | 1,318.10 | 1,704.30 | 3,212.90 | 2,121.80 | 2,094.10 | 2,215.70 | 2,344.36 | 2,480.49 | 2,624.53 |
Weighted Average Cost Of Capital
| Share price | $ 102.45 |
|---|---|
| Beta | 1.336 |
| Diluted Shares Outstanding | 227.10 |
| Cost of Debt | |
| Tax Rate | 20.03 |
| After-tax Cost of Debt | 76.96% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.462 |
| Total Debt | 329.60 |
| Total Equity | 23,266.40 |
| Total Capital | 23,595.99 |
| Debt Weighting | 1.40 |
| Equity Weighting | 98.60 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 5,372.60 | 5,617.90 | 6,206.70 | 7,671.90 | 6,488.40 | 6,865.16 | 7,263.80 | 7,685.59 | 8,131.87 | 8,604.07 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,619.90 | 1,522.70 | 1,918.90 | 3,452 | 2,359.40 | 2,327.71 | 2,462.88 | 2,605.89 | 2,757.21 | 2,917.31 |
| Capital Expenditure | -168.50 | -204.60 | -214.60 | -239.10 | -237.60 | -233.61 | -247.18 | -261.53 | -276.72 | -292.78 |
| Free Cash Flow | 1,451.40 | 1,318.10 | 1,704.30 | 3,212.90 | 2,121.80 | 2,094.10 | 2,215.70 | 2,344.36 | 2,480.49 | 2,624.53 |
| WACC | ||||||||||
| PV LFCF | 1,879.97 | 1,785.74 | 1,696.23 | 1,611.21 | 1,530.45 | |||||
| SUM PV LFCF | 8,503.62 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.39 |
| Free cash flow (t + 1) | 2,677.02 |
| Terminal Value | 28,509.24 |
| Present Value of Terminal Value | 16,624.73 |
Intrinsic Value
| Enterprise Value | 25,128.35 |
|---|---|
| Net Debt | -1,426 |
| Equity Value | 26,554.35 |
| Shares Outstanding | 227.10 |
| Equity Value Per Share | 116.93 |