Discounted Cash Flow (DCF) Analysis Unlevered

IGM Financial Inc. (IGM.TO)

$39.88

+0.85 (+2.18%)

All numbers are in Millions, Currency in USD

Stock DCF: 37.27 | 39.88 | 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	3,099.11	3,127.38	3,150.72	3,587.60	3,455.36	3,557.62	3,662.92	3,771.32	3,882.94	3,997.86
Revenue (%)
EBITDA	1,163.01	1,156.55	1,159.27	1,479.47	1,335.37	1,360.35	1,400.61	1,442.06	1,484.74	1,528.68
EBITDA (%)
EBIT	1,106.95	1,077.05	1,075.77	1,379.65	1,231.38	1,269.32	1,306.89	1,345.57	1,385.39	1,426.39
EBIT (%)
Depreciation	56.06	79.50	83.50	99.82	103.99	91.03	93.72	96.49	99.35	102.29
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	1,022.62	1,021.20	1,364.86	2,583.88	1,675.50	1,632.82	1,681.15	1,730.91	1,782.13	1,834.88
Total Cash (%)
Account Receivables	8,066.96	7,604.18	6,806.68	5,758.34	5,405.83	7,374.52	7,592.77	7,817.49	8,048.86	8,287.08
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	397.38	434.96	486.57	553.43	507.57	514.36	529.58	545.25	561.39	578.01
Accounts Payable (%)
Capital Expenditure	-56.27	-82.93	-107.80	-85.92	-144.78	-102.98	-106.03	-109.17	-112.40	-115.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 39.88
Beta	1.554
Diluted Shares Outstanding	240.02
Cost of Debt
Tax Rate	22.77
After-tax Cost of Debt	1.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.971
Total Debt	6,903.23
Total Equity	9,571.96
Total Capital	16,475.19
Debt Weighting	41.90
Equity Weighting	58.10
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	3,099.11	3,127.38	3,150.72	3,587.60	3,455.36	3,557.62	3,662.92	3,771.32	3,882.94	3,997.86
EBITDA	1,163.01	1,156.55	1,159.27	1,479.47	1,335.37	1,360.35	1,400.61	1,442.06	1,484.74	1,528.68
EBIT	1,106.95	1,077.05	1,075.77	1,379.65	1,231.38	1,269.32	1,306.89	1,345.57	1,385.39	1,426.39
Tax Rate	21.29%	22.68%	20.82%	22.77%	22.77%	22.07%	22.07%	22.07%	22.07%	22.07%
EBIAT	871.30	832.75	851.82	1,065.44	950.99	989.22	1,018.50	1,048.64	1,079.68	1,111.63
Depreciation	56.06	79.50	83.50	99.82	103.99	91.03	93.72	96.49	99.35	102.29
Accounts Receivable	-	462.78	797.50	1,048.34	352.51	-1,968.68	-218.26	-224.72	-231.37	-238.22
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	37.58	51.62	66.85	-45.86	6.78	15.22	15.67	16.14	16.62
Capital Expenditure	-56.27	-82.93	-107.80	-85.92	-144.78	-102.98	-106.03	-109.17	-112.40	-115.73
UFCF	871.10	1,329.67	1,676.64	2,194.53	1,216.86	-984.63	803.15	826.92	851.40	876.60
WACC
PV UFCF						-920.99	702.69	676.72	651.72	627.64
SUM PV UFCF										1,737.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.91
Free cash flow (t + 1)	894.13
Terminal Value	18,210.33
Present Value of Terminal Value	13,038.46

Intrinsic Value

Enterprise Value	14,776.23
Net Debt	5,830.34
Equity Value	8,945.89
Shares Outstanding	240.02
Equity Value Per Share	37.27