Discounted Cash Flow (DCF) Analysis Unlevered

Honeywell Automation India Limited (HONAUT.NS)

40287.15 ₹

+529.40 (+1.33%)

All numbers are in Millions, Currency in USD

Stock DCF: 13,750.60 | 40287.15 | overvalue

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	26,888	31,734.10	32,714.20	30,142.50	29,483.20	30,298.66	31,136.67	31,997.86	32,882.87	33,792.36
Revenue (%)
EBITDA	3,967.10	5,742.60	7,340	6,728.90	5,155.70	5,762.65	5,922.04	6,085.83	6,254.15	6,427.13
EBITDA (%)
EBIT	3,815.10	5,583.70	6,934.20	6,242.30	4,631.10	5,417.24	5,567.07	5,721.05	5,879.28	6,041.89
EBIT (%)
Depreciation	152	158.90	405.80	486.60	524.60	345.41	354.97	364.78	374.87	385.24
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	9,189.60	12,242.50	15,135.30	17,963.70	27,254.70	16,425.41	16,879.71	17,346.57	17,826.35	18,319.40
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	797.70	1,050.60	1,208.90	954.10	986.10	998.80	1,026.43	1,054.82	1,083.99	1,113.97
Inventories (%)
Accounts Payable	7,606.70	8,310	8,480.20	10,966.90	7,162.60	8,548.83	8,785.28	9,028.27	9,277.97	9,534.59
Accounts Payable (%)
Capital Expenditure	-192.80	-237.10	-593.60	-485.40	-126.50	-322.26	-331.18	-340.34	-349.75	-359.42
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 40,287.15
Beta	0.380
Diluted Shares Outstanding	8.84
Cost of Debt
Tax Rate	25.89
After-tax Cost of Debt	7.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.496
Total Debt	557.40
Total Equity	356,195.25
Total Capital	356,752.65
Debt Weighting	0.16
Equity Weighting	99.84
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	26,888	31,734.10	32,714.20	30,142.50	29,483.20	30,298.66	31,136.67	31,997.86	32,882.87	33,792.36
EBITDA	3,967.10	5,742.60	7,340	6,728.90	5,155.70	5,762.65	5,922.04	6,085.83	6,254.15	6,427.13
EBIT	3,815.10	5,583.70	6,934.20	6,242.30	4,631.10	5,417.24	5,567.07	5,721.05	5,879.28	6,041.89
Tax Rate	34.49%	35.33%	28.41%	25.56%	25.89%	29.94%	29.94%	29.94%	29.94%	29.94%
EBIAT	2,499.13	3,610.90	4,963.98	4,646.63	3,431.99	3,795.39	3,900.37	4,008.25	4,119.11	4,233.04
Depreciation	152	158.90	405.80	486.60	524.60	345.41	354.97	364.78	374.87	385.24
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-252.90	-158.30	254.80	-32	-12.70	-27.63	-28.39	-29.17	-29.98
Accounts Payable	-	703.30	170.20	2,486.70	-3,804.30	1,386.23	236.45	242.99	249.71	256.61
Capital Expenditure	-192.80	-237.10	-593.60	-485.40	-126.50	-322.26	-331.18	-340.34	-349.75	-359.42
UFCF	2,458.33	3,983.10	4,788.08	7,389.33	-6.22	5,192.07	4,132.98	4,247.29	4,364.76	4,485.49
WACC
PV UFCF						4,921.39	3,713.28	3,617.05	3,523.31	3,432
SUM PV UFCF										19,207.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.50
Free cash flow (t + 1)	4,575.20
Terminal Value	130,719.88
Present Value of Terminal Value	100,018.27

Intrinsic Value

Enterprise Value	119,225.31
Net Debt	-2,349.40
Equity Value	121,574.71
Shares Outstanding	8.84
Equity Value Per Share	13,750.60