Discounted Cash Flow (DCF) Analysis Levered
Visa Inc. (V)
$229.08
-1.05 (-0.46%)
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 | 20,609 | 22,977 | 21,846 | 24,105 | 29,310 | 32,131.19 | 35,223.93 | 38,614.36 | 42,331.13 | 46,405.65 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 12,713 | 12,784 | 10,440 | 15,227 | 18,849 | 18,802.69 | 20,612.52 | 22,596.55 | 24,771.54 | 27,155.89 |
| 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 | 11,995 | 12,028 | 9,704 | 14,522 | 17,879 | 17,750.25 | 19,458.77 | 21,331.74 | 23,385 | 25,635.89 |
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 | 20,609 | 22,977 | 21,846 | 24,105 | 29,310 | 32,131.19 | 35,223.93 | 38,614.36 | 42,331.13 | 46,405.65 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 12,713 | 12,784 | 10,440 | 15,227 | 18,849 | 18,802.69 | 20,612.52 | 22,596.55 | 24,771.54 | 27,155.89 |
| Capital Expenditure | -718 | -756 | -736 | -705 | -970 | -1,052.45 | -1,153.75 | -1,264.80 | -1,386.54 | -1,520 |
| Free Cash Flow | 11,995 | 12,028 | 9,704 | 14,522 | 17,879 | 17,750.25 | 19,458.77 | 21,331.74 | 23,385 | 25,635.89 |
| WACC | ||||||||||
| PV LFCF | 11,317.06 | 11,509.75 | 11,705.73 | 11,905.05 | 12,107.76 | |||||
| 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 |