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
Stock DCF: 22.75 | 13.88 | 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 5,589.905,292.104,8355,070.804,475.504,242.464,021.563,812.163,613.673,425.51
Revenue (%)
Operating Cash Flow 821.30914.60877.501,045.30581.60710.47673.48638.41605.17573.66
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 482.30786.90720.70830.70549.70569.06539.43511.35484.72459.48

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 5,589.905,292.104,8355,070.804,475.504,242.464,021.563,812.163,613.673,425.51
Operating Cash Flow 821.30914.60877.501,045.30581.60710.47673.48638.41605.17573.66
Capital Expenditure -339-127.70-156.80-214.60-31.90-141.40-134.04-127.06-120.45-114.17
Free Cash Flow 482.30786.90720.70830.70549.70569.06539.43511.35484.72459.48
WACC
PV LFCF 527.60463.68407.51358.14314.75
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