Discounted Cash Flow (DCF) Analysis Levered

Wipro Limited (WIT)

$6.1

+0.16 (+2.69%)
All numbers are in Millions, Currency in USD
Stock DCF: 2,773.02 | 6.1 | 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 544,871585,845610,232619,430790,934871,762.19960,850.481,059,0431,167,270.141,286,557.37
Revenue (%)
Operating Cash Flow 84,233116,316100,643147,550110,797156,280.62172,251.46189,854.42209,256.27230,640.87
Operating Cash Flow (%)
Capital Expenditure -21,870-22,781-23,497-19,577-20,153-30,444.30-33,555.50-36,984.65-40,764.24-44,930.07
Capital Expenditure (%)
Free Cash Flow 62,36393,53577,146127,97390,644125,836.33138,695.96152,869.76168,492.04185,710.80

Weighted Average Cost Of Capital

Share price $ 6.1
Beta 0.748
Diluted Shares Outstanding 5,661.66
Cost of Debt
Tax Rate 19.23
After-tax Cost of Debt 2.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.272
Total Debt 175,929
Total Equity 34,536.11
Total Capital 210,465.11
Debt Weighting 83.59
Equity Weighting 16.41
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 544,871585,845610,232619,430790,934871,762.19960,850.481,059,0431,167,270.141,286,557.37
Operating Cash Flow 84,233116,316100,643147,550110,797156,280.62172,251.46189,854.42209,256.27230,640.87
Capital Expenditure -21,870-22,781-23,497-19,577-20,153-30,444.30-33,555.50-36,984.65-40,764.24-44,930.07
Free Cash Flow 62,36393,53577,146127,97390,644125,836.33138,695.96152,869.76168,492.04185,710.80
WACC
PV LFCF 122,076.37130,531.40139,572.02149,238.80159,575.10
SUM PV LFCF 700,993.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.08
Free cash flow (t + 1) 189,425.02
Terminal Value 17,539,353.34
Present Value of Terminal Value 15,070,981.20

Intrinsic Value

Enterprise Value 15,771,974.88
Net Debt 72,093
Equity Value 15,699,881.88
Shares Outstanding 5,661.66
Equity Value Per Share 2,773.02