Discounted Cash Flow (DCF) Analysis Unlevered

International Game Technology PLC (IGT)

$24.38

-2.26 (-8.48%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.60 | 24.38 | 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 4,829.544,785.813,115.464,0894,2234,209.474,195.984,182.534,169.134,155.77
Revenue (%)
EBITDA 1,314.541,467.51976.781,5521,3351,336.951,332.671,328.401,324.141,319.90
EBITDA (%)
EBIT 601.70754.06200.15810603578.61576.76574.91573.07571.23
EBIT (%)
Depreciation 712.84713.46776.63742732758.34755.91753.49751.08748.67
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 250.67662.93907.02591590644.72642.66640.60638.55636.50
Total Cash (%)
Account Receivables 1,338.461,006.13846.139031,0361,031.421,028.121,024.821,021.541,018.27
Account Receivables (%)
Inventories 282.70161.79169.21183254211.78211.10210.43209.75209.08
Inventories (%)
Accounts Payable 1,070.411,120.921,126.041,0356471,030.161,026.861,023.571,020.291,017.02
Accounts Payable (%)
Capital Expenditure -533.05-442.08-254.69-238-317-351.72-350.59-349.47-348.35-347.23
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 24.38
Beta 1.971
Diluted Shares Outstanding 203.41
Cost of Debt
Tax Rate 47.62
After-tax Cost of Debt 2.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.513
Total Debt 6,065
Total Equity 4,959.23
Total Capital 11,024.23
Debt Weighting 55.02
Equity Weighting 44.98
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 4,829.544,785.813,115.464,0894,2234,209.474,195.984,182.534,169.134,155.77
EBITDA 1,314.541,467.51976.781,5521,3351,336.951,332.671,328.401,324.141,319.90
EBIT 601.70754.06200.15810603578.61576.76574.91573.07571.23
Tax Rate 247.56%60.79%-3.27%51.80%47.62%80.90%80.90%80.90%80.90%80.90%
EBIAT -887.84295.67206.69390.45315.86110.52110.17109.82109.46109.11
Depreciation 712.84713.46776.63742732758.34755.91753.49751.08748.67
Accounts Receivable -332.33160-56.87-1334.583.313.293.283.27
Inventories -120.91-7.42-13.79-7142.220.680.680.670.67
Accounts Payable -50.515.12-91.04-388383.16-3.30-3.29-3.28-3.27
Capital Expenditure -533.05-442.08-254.69-238-317-351.72-350.59-349.47-348.35-347.23
UFCF -708.061,070.79886.33732.75138.86947.10516.17514.52512.87511.23
WACC
PV UFCF 880.86446.50413.94383.75355.77
SUM PV UFCF 2,480.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.52
Free cash flow (t + 1) 521.45
Terminal Value 9,446.61
Present Value of Terminal Value 6,574

Intrinsic Value

Enterprise Value 9,054.82
Net Debt 5,475
Equity Value 3,579.82
Shares Outstanding 203.41
Equity Value Per Share 17.60