Discounted Cash Flow (DCF) Analysis Unlevered

Bharat Electronics Limited (BEL.NS)

93.1 ₹

+2.15 (+2.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 132.27 | 93.1 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 100,775.90118,547126,365.80138,497.10150,847.40166,968.21184,811.82204,562.34226,423.57250,621.07
Revenue (%)
EBITDA 22,549.2030,171.1028,844.4033,645.1036,168.3039,712.4543,956.4548,65453,853.5859,608.82
EBITDA (%)
EBIT 19,83226,789.8025,125.8029,771.9032,15735,055.0238,801.2942,947.9247,537.6952,617.96
EBIT (%)
Depreciation 2,717.203,381.303,718.603,873.204,011.304,657.435,155.165,706.096,315.896,990.86
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 8,535.609,249.2016,762.4050,871.40137,758.5052,625.4158,249.4064,474.4171,364.6878,991.30
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories 46,157.6044,433.5039,58349,679.8055,91962,629.3369,322.4276,730.7984,930.8894,007.30
Inventories (%)
Accounts Payable 15,331.8015,87225,907.3035,07728,069.4031,069.1334,389.4438,064.5842,132.4746,635.10
Accounts Payable (%)
Capital Expenditure -8,071.10-7,614.20-7,465.80-4,692.50-5,545.60-9,151.34-10,129.33-11,211.83-12,410.02-13,736.26
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 93.1
Beta 0.253
Diluted Shares Outstanding 7,309.78
Cost of Debt
Tax Rate 24.24
After-tax Cost of Debt 3.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.543
Total Debt -
Total Equity 680,540.41
Total Capital 680,540.41
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 100,775.90118,547126,365.80138,497.10150,847.40166,968.21184,811.82204,562.34226,423.57250,621.07
EBITDA 22,549.2030,171.1028,844.4033,645.1036,168.3039,712.4543,956.4548,65453,853.5859,608.82
EBIT 19,83226,789.8025,125.8029,771.9032,15735,055.0238,801.2942,947.9247,537.6952,617.96
Tax Rate 27.72%28.23%26.41%28.65%24.24%27.05%27.05%27.05%27.05%27.05%
EBIAT 14,334.4719,227.4518,490.0321,242.0524,363.4325,572.9328,305.8731,330.8734,679.1438,385.24
Depreciation 2,717.203,381.303,718.603,873.204,011.304,657.435,155.165,706.096,315.896,990.86
Accounts Receivable ----------
Inventories -1,724.104,850.50-10,096.80-6,239.20-6,710.33-6,693.09-7,408.37-8,200.09-9,076.42
Accounts Payable -540.2010,035.309,169.70-7,007.602,999.733,320.313,675.144,067.904,502.63
Capital Expenditure -8,071.10-7,614.20-7,465.80-4,692.50-5,545.60-9,151.34-10,129.33-11,211.83-12,410.02-13,736.26
UFCF 8,980.5817,258.8529,628.6319,495.659,582.3317,368.4219,958.9222,091.8924,452.8227,066.05
WACC
PV UFCF 16,614.1418,262.9919,336.8420,473.8221,677.66
SUM PV UFCF 96,365.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.54
Free cash flow (t + 1) 27,607.37
Terminal Value 1,086,904.20
Present Value of Terminal Value 870,520.07

Intrinsic Value

Enterprise Value 966,885.51
Net Debt -
Equity Value 966,885.51
Shares Outstanding 7,309.78
Equity Value Per Share 132.27