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	4,779	5,371.39	5,473.71	5,952.68	6,485.15	7,003.90	7,564.14	8,169.19	8,822.65	9,528.37
Revenue (%)
EBITDA	2,785.14	3,559.30	1,715.18	3,559.22	4,043.52	3,894.45	4,205.97	4,542.40	4,905.75	5,298.16
EBITDA (%)
EBIT	2,620.44	3,297.28	1,446.43	3,278.85	3,707.30	3,570.47	3,856.07	4,164.52	4,497.63	4,857.40
EBIT (%)
Depreciation	164.70	262.02	268.75	280.37	336.23	323.98	349.90	377.88	408.11	440.76
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	21,756.01	25,250.93	37,691.06	34,991.31	30,555.72	37,441.64	40,436.60	43,671.11	47,164.36	50,937.03
Total Cash (%)
Account Receivables	2,659.81	1,059.16	1,460.63	3,607.79	1,870.38	2,682.61	2,897.19	3,128.93	3,379.22	3,649.52
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	1,067.81	907.29	1,072.15	1,154.54	1,662.12	1,454.67	1,571.03	1,696.70	1,832.41	1,978.99
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	4,779	5,371.39	5,473.71	5,952.68	6,485.15	7,003.90	7,564.14	8,169.19	8,822.65	9,528.37
EBITDA	2,785.14	3,559.30	1,715.18	3,559.22	4,043.52	3,894.45	4,205.97	4,542.40	4,905.75	5,298.16
EBIT	2,620.44	3,297.28	1,446.43	3,278.85	3,707.30	3,570.47	3,856.07	4,164.52	4,497.63	4,857.40
Tax Rate	29.68%	25.16%	-7.55%	25.15%	23.48%	19.18%	19.18%	19.18%	19.18%	19.18%
EBIAT	1,842.72	2,467.83	1,555.71	2,454.27	2,836.95	2,885.62	3,116.44	3,365.72	3,634.94	3,925.70
Depreciation	164.70	262.02	268.75	280.37	336.23	323.98	349.90	377.88	408.11	440.76
Accounts Receivable	-	1,600.65	-401.46	-2,147.16	1,737.40	-812.22	-214.58	-231.75	-250.28	-270.30
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-160.52	164.86	82.39	507.58	-207.45	116.36	125.67	135.72	146.57
Capital Expenditure	-200.64	-210.72	-248.43	-257.01	-361.55	-315.91	-341.18	-368.47	-397.95	-429.78
UFCF	1,806.78	3,959.25	1,339.43	412.85	5,056.62	1,874.01	3,026.93	3,269.05	3,530.54	3,812.95
WACC
PV UFCF						1,691.96	2,467.38	2,405.88	2,345.90	2,287.42
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