Discounted Cash Flow (DCF) Analysis Levered

Invesco Trust for Investment Grade ... (VTN)

$9.75

+0.05 (+0.52%)

All numbers are in Millions, Currency in USD

Stock DCF: 18.77 | 9.75 | undervalue

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	8.83	8.80	33.97	-4.97	0.70	0.80	0.91	1.04	1.19	1.36
Revenue (%)
Operating Cash Flow	17.67	26.36	11.23	22.42	31.64	7.36	8.41	9.60	10.97	12.53
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	7.36	8.41	9.60	10.97	12.53

Weighted Average Cost Of Capital

Share price	$ 9.75
Beta	0.347
Diluted Shares Outstanding	19.96
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	2.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.256
Total Debt	59.67
Total Equity	194.61
Total Capital	254.29
Debt Weighting	23.47
Equity Weighting	76.53
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	8.83	8.80	33.97	-4.97	0.70	0.80	0.91	1.04	1.19	1.36
Operating Cash Flow	17.67	26.36	11.23	22.42	31.64	7.36	8.41	9.60	10.97	12.53
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	7.36	8.41	9.60	10.97	12.53
WACC
PV LFCF						7.03	7.68	8.39	9.16	10
SUM PV LFCF										42.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.61
Free cash flow (t + 1)	12.78
Terminal Value	489.70
Present Value of Terminal Value	390.90

Intrinsic Value

Enterprise Value	433.16
Net Debt	58.55
Equity Value	374.62
Shares Outstanding	19.96
Equity Value Per Share	18.77