Discounted Cash Flow (DCF) Analysis Levered

Wipro Limited (WIT)

$4.95

+0.07 (+1.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,326.80 | 4.95 | undervalue

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 585,845610,232619,430790,934904,8761,012,925.881,133,877.831,269,272.471,420,834.381,590,494.06
Revenue (%)
Operating Cash Flow 116,316100,643147,550110,797130,601179,508.02200,942.80224,937.08251,796.47281,863.11
Operating Cash Flow (%)
Capital Expenditure -22,781-23,497-19,577-20,153-14,834-30,563.82-34,213.40-38,298.77-42,871.97-47,991.25
Capital Expenditure (%)
Free Cash Flow 93,53577,146127,97390,644115,766.99148,944.20166,729.40186,638.30208,924.50233,871.86

Weighted Average Cost Of Capital

Share price $ 4.95
Beta 0.650
Diluted Shares Outstanding 5,488.99
Cost of Debt
Tax Rate 23.13
After-tax Cost of Debt 4.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.695
Total Debt 174,666
Total Equity 27,170.51
Total Capital 201,836.51
Debt Weighting 86.54
Equity Weighting 13.46
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 585,845610,232619,430790,934904,8761,012,925.881,133,877.831,269,272.471,420,834.381,590,494.06
Operating Cash Flow 116,316100,643147,550110,797130,601179,508.02200,942.80224,937.08251,796.47281,863.11
Capital Expenditure -22,781-23,497-19,577-20,153-14,834-30,563.82-34,213.40-38,298.77-42,871.97-47,991.25
Free Cash Flow 93,53577,146127,97390,644115,766.99148,944.20166,729.40186,638.30208,924.50233,871.86
WACC
PV LFCF 142,027.46151,603.65161,825.51172,736.57184,383.32
SUM PV LFCF 812,576.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.87
Free cash flow (t + 1) 238,549.30
Terminal Value 8,311,822.26
Present Value of Terminal Value 6,552,996.07

Intrinsic Value

Enterprise Value 7,365,572.58
Net Debt 82,786
Equity Value 7,282,786.58
Shares Outstanding 5,488.99
Equity Value Per Share 1,326.80