Discounted Cash Flow (DCF) Analysis Unlevered

Intercorp Financial Services Inc. (IFS)

$22.68

-0.12 (-0.53%)
All numbers are in Millions, Currency in USD
Stock DCF: 267.06 | 22.68 | 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 4,7795,371.395,473.715,952.686,483.317,001.417,560.918,165.128,817.629,522.25
Revenue (%)
EBITDA 2,785.142,196.60579.082,571.964,043.523,015.193,256.143,516.353,797.354,100.80
EBITDA (%)
EBIT 2,620.441,934.58310.332,292.273,707.302,691.462,906.543,138.813,389.643,660.52
EBIT (%)
Depreciation 164.70262.02268.75279.69336.23323.73349.60377.53407.70440.28
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 21,756.0125,250.9337,691.0634,991.3130,555.7237,430.2140,421.3543,651.5347,139.8350,906.89
Total Cash (%)
Account Receivables 2,659.811,059.161,460.631,669.061,750.342,199.782,375.572,565.412,770.422,991.81
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1,067.81907.29885.30983.581,277.061,283.071,385.611,496.331,615.911,745.04
Accounts Payable (%)
Capital Expenditure -200.64-210.72-248.43-257.81-362.31-316.17-341.44-368.72-398.19-430.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 22.68
Beta 0.797
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 8.333
Total Debt 10,474.92
Total Equity 2,617.68
Total Capital 13,092.60
Debt Weighting 80.01
Equity Weighting 19.99
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 4,7795,371.395,473.715,952.686,483.317,001.417,560.918,165.128,817.629,522.25
EBITDA 2,785.142,196.60579.082,571.964,043.523,015.193,256.143,516.353,797.354,100.80
EBIT 2,620.441,934.58310.332,292.273,707.302,691.462,906.543,138.813,389.643,660.52
Tax Rate 29.68%25.16%-7.55%25.15%23.48%19.18%19.18%19.18%19.18%19.18%
EBIAT 1,842.721,447.93333.771,715.792,836.952,175.212,349.042,536.762,739.482,958.39
Depreciation 164.70262.02268.75279.69336.23323.73349.60377.53407.70440.28
Accounts Receivable -1,600.65-401.46-208.43-81.28-449.44-175.79-189.84-205.01-221.39
Inventories ----------
Accounts Payable --160.52-21.9998.28293.496.01102.53110.73119.58129.13
Capital Expenditure -200.64-210.72-248.43-257.81-362.31-316.17-341.44-368.72-398.19-430.01
UFCF 1,806.782,939.35-69.361,627.523,023.071,739.342,283.942,466.462,663.562,876.41
WACC
PV UFCF 1,568.101,856.371,807.361,759.631,713.17
SUM PV UFCF 8,704.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.92
Free cash flow (t + 1) 2,933.94
Terminal Value 32,891.66
Present Value of Terminal Value 19,590.09

Intrinsic Value

Enterprise Value 28,294.72
Net Debt -2,528.98
Equity Value 30,823.70
Shares Outstanding 115.42
Equity Value Per Share 267.06