Discounted Cash Flow (DCF) Analysis Unlevered

The Bank of New York Mellon Corpora... (BK)

$44.66

-0.15 (-0.33%)
All numbers are in Millions, Currency in USD
Stock DCF: 320.53 | 44.66 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,90415,36616,46215,50615,63315,837.9616,045.6016,255.9616,469.0916,685.01
Revenue (%)
EBITDA 7,1349,36411,2367,2366,7308,450.378,561.168,673.408,787.128,902.32
EBITDA (%)
EBIT 5,6608,0259,9215,6064,8636,896.776,987.197,078.807,171.607,265.62
EBIT (%)
Depreciation 1,4741,3391,3151,6301,8671,553.601,573.971,594.611,615.511,636.69
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 188,414173,809203,233271,443166,807204,229.04206,906.58209,619.22212,367.43215,151.67
Total Cash (%)
Account Receivables 6,7335,4884,8145,7165,9035,852.355,929.086,006.816,085.566,165.35
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 20,18419,73118,75825,08525,15022,186.9022,477.7922,772.4823,071.0423,373.51
Accounts Payable (%)
Capital Expenditure -1,197-1,108-1,210-1,222-1,215-1,211.45-1,227.34-1,243.43-1,259.73-1,276.24
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 44.66
Beta 1.106
Diluted Shares Outstanding 892.51
Cost of Debt
Tax Rate 19.13
After-tax Cost of Debt 0.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.099
Total Debt 26,680
Total Equity 39,859.68
Total Capital 66,539.68
Debt Weighting 40.10
Equity Weighting 59.90
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,90415,36616,46215,50615,63315,837.9616,045.6016,255.9616,469.0916,685.01
EBITDA 7,1349,36411,2367,2366,7308,450.378,561.168,673.408,787.128,902.32
EBIT 5,6608,0259,9215,6064,8636,896.776,987.197,078.807,171.607,265.62
Tax Rate 11.28%17.84%20.51%19.05%19.13%17.56%17.56%17.56%17.56%17.56%
EBIAT 5,021.566,593.737,886.014,538.253,932.885,685.705,760.245,835.765,912.275,989.78
Depreciation 1,4741,3391,3151,6301,8671,553.601,573.971,594.611,615.511,636.69
Accounts Receivable -1,245674-902-18750.65-76.73-77.73-78.75-79.78
Inventories ----------
Accounts Payable --453-9736,32765-2,963.10290.88294.69298.56302.47
Capital Expenditure -1,197-1,108-1,210-1,222-1,215-1,211.45-1,227.34-1,243.43-1,259.73-1,276.24
UFCF 5,298.567,616.737,692.0110,371.254,462.883,115.406,321.036,403.906,487.866,572.92
WACC
PV UFCF 2,963.385,719.195,511.445,311.235,118.29
SUM PV UFCF 24,623.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.13
Free cash flow (t + 1) 6,704.38
Terminal Value 214,197.39
Present Value of Terminal Value 166,794.17

Intrinsic Value

Enterprise Value 191,417.69
Net Debt -94,656
Equity Value 286,073.69
Shares Outstanding 892.51
Equity Value Per Share 320.53