Discounted Cash Flow (DCF) Analysis Levered

Visa Inc. (V)

$229.08

-1.05 (-0.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 177.70 | 229.08 | overvalue

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 20,60922,97721,84624,10529,31032,131.1935,223.9338,614.3642,331.1346,405.65
Revenue (%)
Operating Cash Flow 12,71312,78410,44015,22718,84918,802.6920,612.5222,596.5524,771.5427,155.89
Operating Cash Flow (%)
Capital Expenditure -718-756-736-705-970-1,052.45-1,153.75-1,264.80-1,386.54-1,520
Capital Expenditure (%)
Free Cash Flow 11,99512,0289,70414,52217,87917,750.2519,458.7721,331.7423,38525,635.89

Weighted Average Cost Of Capital

Share price $ 229.08
Beta 0.941
Diluted Shares Outstanding 2,188
Cost of Debt
Tax Rate 17.53
After-tax Cost of Debt 1.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.052
Total Debt 22,450
Total Equity 501,227.04
Total Capital 523,677.04
Debt Weighting 4.29
Equity Weighting 95.71
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 20,60922,97721,84624,10529,31032,131.1935,223.9338,614.3642,331.1346,405.65
Operating Cash Flow 12,71312,78410,44015,22718,84918,802.6920,612.5222,596.5524,771.5427,155.89
Capital Expenditure -718-756-736-705-970-1,052.45-1,153.75-1,264.80-1,386.54-1,520
Free Cash Flow 11,99512,0289,70414,52217,87917,750.2519,458.7721,331.7423,38525,635.89
WACC
PV LFCF 11,317.0611,509.7511,705.7311,905.0512,107.76
SUM PV LFCF 85,189.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.79
Free cash flow (t + 1) 26,148.61
Terminal Value 451,616.67
Present Value of Terminal Value 310,368.48

Intrinsic Value

Enterprise Value 395,557.72
Net Debt 6,761
Equity Value 388,796.72
Shares Outstanding 2,188
Equity Value Per Share 177.70