Discounted Cash Flow (DCF) Analysis Levered

Visa Inc. (V)

$280.53

-2.63 (-0.93%)
All numbers are in Millions, Currency in USD
Stock DCF: 184.76 | 280.53 | 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 22,97721,84624,10529,31032,65335,789.0739,226.3442,993.7347,122.9551,648.75
Revenue (%)
Operating Cash Flow 12,78410,44015,22718,84920,75521,077.4923,101.8225,320.5727,752.4230,417.83
Operating Cash Flow (%)
Capital Expenditure -756-736-705-970-1,059-1,155.03-1,265.96-1,387.55-1,520.81-1,666.87
Capital Expenditure (%)
Free Cash Flow 12,0289,70414,52217,87919,69619,922.4621,835.8623,933.0226,231.6128,750.95

Weighted Average Cost Of Capital

Share price $ 280.53
Beta 0.962
Diluted Shares Outstanding 2,085
Cost of Debt
Tax Rate 17.89
After-tax Cost of Debt 3.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.751
Total Debt 20,463
Total Equity 584,905.05
Total Capital 605,368.05
Debt Weighting 3.38
Equity Weighting 96.62
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 22,97721,84624,10529,31032,65335,789.0739,226.3442,993.7347,122.9551,648.75
Operating Cash Flow 12,78410,44015,22718,84920,75521,077.4923,101.8225,320.5727,752.4230,417.83
Capital Expenditure -756-736-705-970-1,059-1,155.03-1,265.96-1,387.55-1,520.81-1,666.87
Free Cash Flow 12,0289,70414,52217,87919,69619,922.4621,835.8623,933.0226,231.6128,750.95
WACC
PV LFCF 18,349.8718,524.6718,701.1418,879.2919,059.13
SUM PV LFCF 93,514.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.57
Free cash flow (t + 1) 29,325.97
Terminal Value 446,361.84
Present Value of Terminal Value 295,895.17

Intrinsic Value

Enterprise Value 389,409.27
Net Debt 4,177
Equity Value 385,232.27
Shares Outstanding 2,085
Equity Value Per Share 184.76