Discounted Cash Flow (DCF) Analysis Levered

The Western Union Company (WU)

$12.96

+0.01 (+0.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 23.84 | 12.96 | 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 5,292.104,8355,070.804,475.504,3574,159.323,970.613,790.473,618.503,454.32
Revenue (%)
Operating Cash Flow 914.60877.501,045.30581.60783.10723.84691659.65629.72601.15
Operating Cash Flow (%)
Capital Expenditure -127.70-156.80-214.60-208.20-22.90-125.33-119.64-114.21-109.03-104.08
Capital Expenditure (%)
Free Cash Flow 786.90720.70830.70373.40760.20598.51571.36545.44520.69497.07

Weighted Average Cost Of Capital

Share price $ 12.96
Beta 0.848
Diluted Shares Outstanding 371.80
Cost of Debt
Tax Rate 16.06
After-tax Cost of Debt 3.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.288
Total Debt 2,796.80
Total Equity 4,818.53
Total Capital 7,615.33
Debt Weighting 36.73
Equity Weighting 63.27
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 5,292.104,8355,070.804,475.504,3574,159.323,970.613,790.473,618.503,454.32
Operating Cash Flow 914.60877.501,045.30581.60783.10723.84691659.65629.72601.15
Capital Expenditure -127.70-156.80-214.60-208.20-22.90-125.33-119.64-114.21-109.03-104.08
Free Cash Flow 786.90720.70830.70373.40760.20598.51571.36545.44520.69497.07
WACC
PV LFCF 408.80366.23328.09293.92263.31
SUM PV LFCF 2,281.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.56
Free cash flow (t + 1) 507.01
Terminal Value 11,118.56
Present Value of Terminal Value 8,092.40

Intrinsic Value

Enterprise Value 10,373.63
Net Debt 1,510.90
Equity Value 8,862.73
Shares Outstanding 371.80
Equity Value Per Share 23.84