Discounted Cash Flow (DCF) Analysis Unlevered

Colgate-Palmolive Company (CL)

$76.77

-0.16 (-0.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 80.64 | 76.77 | 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 15,45415,54415,69316,47117,42117,955.2318,505.8419,073.3319,658.2320,261.06
Revenue (%)
EBITDA 3,9654,0103,8524,2043,6634,400.844,535.804,674.894,818.254,966.01
EBITDA (%)
EBIT 3,4903,4993,3333,6653,1073,821.533,938.724,059.504,183.994,312.29
EBIT (%)
Depreciation 475511519539556579.32597.08615.39634.26653.71
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 1,5357268838888321,091.581,125.051,159.551,195.111,231.76
Total Cash (%)
Account Receivables 1,4801,4001,4401,2641,2971,539.791,587.011,635.681,685.841,737.54
Account Receivables (%)
Inventories 1,2211,2501,4001,6731,6921,606.401,655.661,706.431,758.761,812.69
Inventories (%)
Accounts Payable 1,2121,2221,2371,3931,4791,455.581,500.221,546.231,593.641,642.51
Accounts Payable (%)
Capital Expenditure -553-436-335-410-567-512.15-527.86-544.05-560.73-577.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 76.77
Beta 0.511
Diluted Shares Outstanding 848.30
Cost of Debt
Tax Rate 29.83
After-tax Cost of Debt 1.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.103
Total Debt 7,833
Total Equity 65,123.99
Total Capital 72,956.99
Debt Weighting 10.74
Equity Weighting 89.26
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 15,45415,54415,69316,47117,42117,955.2318,505.8419,073.3319,658.2320,261.06
EBITDA 3,9654,0103,8524,2043,6634,400.844,535.804,674.894,818.254,966.01
EBIT 3,4903,4993,3333,6653,1073,821.533,938.724,059.504,183.994,312.29
Tax Rate 41.96%30.72%28.29%26.10%29.83%31.38%31.38%31.38%31.38%31.38%
EBIAT 2,025.742,424.252,389.952,708.302,180.032,622.302,702.712,785.592,871.012,959.06
Depreciation 475511519539556579.32597.08615.39634.26653.71
Accounts Receivable -80-40176-33-242.79-47.22-48.67-50.16-51.70
Inventories --29-150-273-1985.60-49.26-50.77-52.33-53.93
Accounts Payable -101515686-23.4244.6446.0147.4248.87
Capital Expenditure -553-436-335-410-567-512.15-527.86-544.05-560.73-577.92
UFCF 1,947.742,560.252,398.952,896.302,203.032,508.852,720.092,803.502,889.482,978.08
WACC
PV UFCF 2,375.132,437.862,378.702,320.972,264.65
SUM PV UFCF 11,777.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.63
Free cash flow (t + 1) 3,037.65
Terminal Value 83,681.70
Present Value of Terminal Value 63,634.71

Intrinsic Value

Enterprise Value 75,412.03
Net Debt 7,001
Equity Value 68,411.03
Shares Outstanding 848.30
Equity Value Per Share 80.64