Discounted Cash Flow (DCF) Analysis Levered
The Western Union Company (WU)
$13.88
+0.03 (+0.22%)
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 | 5,589.90 | 5,292.10 | 4,835 | 5,070.80 | 4,475.50 | 4,242.46 | 4,021.56 | 3,812.16 | 3,613.67 | 3,425.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 821.30 | 914.60 | 877.50 | 1,045.30 | 581.60 | 710.47 | 673.48 | 638.41 | 605.17 | 573.66 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -339 | -127.70 | -156.80 | -214.60 | -31.90 | -141.40 | -134.04 | -127.06 | -120.45 | -114.17 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 482.30 | 786.90 | 720.70 | 830.70 | 549.70 | 569.06 | 539.43 | 511.35 | 484.72 | 459.48 |
Weighted Average Cost Of Capital
| Share price | $ 13.88 |
|---|---|
| Beta | 0.894 |
| Diluted Shares Outstanding | 388.40 |
| Cost of Debt | |
| Tax Rate | 9.72 |
| After-tax Cost of Debt | 4.51% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.860 |
| Total Debt | - |
| Total Equity | 5,390.99 |
| Total Capital | 5,390.99 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| 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 | 5,589.90 | 5,292.10 | 4,835 | 5,070.80 | 4,475.50 | 4,242.46 | 4,021.56 | 3,812.16 | 3,613.67 | 3,425.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 821.30 | 914.60 | 877.50 | 1,045.30 | 581.60 | 710.47 | 673.48 | 638.41 | 605.17 | 573.66 |
| Capital Expenditure | -339 | -127.70 | -156.80 | -214.60 | -31.90 | -141.40 | -134.04 | -127.06 | -120.45 | -114.17 |
| Free Cash Flow | 482.30 | 786.90 | 720.70 | 830.70 | 549.70 | 569.06 | 539.43 | 511.35 | 484.72 | 459.48 |
| WACC | ||||||||||
| PV LFCF | 527.60 | 463.68 | 407.51 | 358.14 | 314.75 | |||||
| SUM PV LFCF | 2,071.67 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.86 |
| Free cash flow (t + 1) | 468.67 |
| Terminal Value | 7,997.81 |
| Present Value of Terminal Value | 5,478.59 |
Intrinsic Value
| Enterprise Value | 7,550.26 |
|---|---|
| Net Debt | -1,285.90 |
| Equity Value | 8,836.16 |
| Shares Outstanding | 388.40 |
| Equity Value Per Share | 22.75 |