Discounted Cash Flow (DCF) Analysis Unlevered

Intercorp Financial Services Inc. (IFS)

$22.31

+0.36 (+1.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 349.69 | 22.31 | 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 4,7795,371.395,473.715,952.686,485.157,003.907,564.148,169.198,822.659,528.37
Revenue (%)
EBITDA 2,785.143,559.301,715.183,559.224,043.523,894.454,205.974,542.404,905.755,298.16
EBITDA (%)
EBIT 2,620.443,297.281,446.433,278.853,707.303,570.473,856.074,164.524,497.634,857.40
EBIT (%)
Depreciation 164.70262.02268.75280.37336.23323.98349.90377.88408.11440.76
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 21,756.0125,250.9337,691.0634,991.3130,555.7237,441.6440,436.6043,671.1147,164.3650,937.03
Total Cash (%)
Account Receivables 2,659.811,059.161,460.633,607.791,870.382,682.612,897.193,128.933,379.223,649.52
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1,067.81907.291,072.151,154.541,662.121,454.671,571.031,696.701,832.411,978.99
Accounts Payable (%)
Capital Expenditure -200.64-210.72-248.43-257.01-361.55-315.91-341.18-368.47-397.95-429.78
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 22.31
Beta 0.792
Diluted Shares Outstanding 115.42
Cost of Debt
Tax Rate 23.48
After-tax Cost of Debt 11.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.479
Total Debt 10,475.99
Total Equity 2,574.98
Total Capital 13,050.97
Debt Weighting 80.27
Equity Weighting 19.73
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 4,7795,371.395,473.715,952.686,485.157,003.907,564.148,169.198,822.659,528.37
EBITDA 2,785.143,559.301,715.183,559.224,043.523,894.454,205.974,542.404,905.755,298.16
EBIT 2,620.443,297.281,446.433,278.853,707.303,570.473,856.074,164.524,497.634,857.40
Tax Rate 29.68%25.16%-7.55%25.15%23.48%19.18%19.18%19.18%19.18%19.18%
EBIAT 1,842.722,467.831,555.712,454.272,836.952,885.623,116.443,365.723,634.943,925.70
Depreciation 164.70262.02268.75280.37336.23323.98349.90377.88408.11440.76
Accounts Receivable -1,600.65-401.46-2,147.161,737.40-812.22-214.58-231.75-250.28-270.30
Inventories ----------
Accounts Payable --160.52164.8682.39507.58-207.45116.36125.67135.72146.57
Capital Expenditure -200.64-210.72-248.43-257.01-361.55-315.91-341.18-368.47-397.95-429.78
UFCF 1,806.783,959.251,339.43412.855,056.621,874.013,026.933,269.053,530.543,812.95
WACC
PV UFCF 1,691.962,467.382,405.882,345.902,287.42
SUM PV UFCF 11,198.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.76
Free cash flow (t + 1) 3,889.21
Terminal Value 44,397.38
Present Value of Terminal Value 26,634.38

Intrinsic Value

Enterprise Value 37,832.93
Net Debt -2,527.90
Equity Value 40,360.83
Shares Outstanding 115.42
Equity Value Per Share 349.69