Discounted Cash Flow (DCF) Analysis Unlevered

InterGlobe Aviation Limited (INDIGO.NS)

2084.9 ₹

-39.35 (-1.85%)

All numbers are in Millions, Currency in USD

Stock DCF: 2,206.46 | 2084.9 | 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	225,005.18	281,652.20	353,688.59	142,098.96	259,309.27	306,901.28	363,228.04	429,892.66	508,792.49	602,173.10
Revenue (%)
EBITDA	39,006.78	11,055.20	55,728.15	10,232.90	12,729.31	30,154.60	35,688.99	42,239.12	49,991.43	59,166.55
EBITDA (%)
EBIT	34,638.01	3,459.40	15,988.86	-36,761.56	-37,956.69	-11,886.19	-14,067.70	-16,649.60	-19,705.37	-23,321.97
EBIT (%)
Depreciation	4,368.77	7,595.80	39,739.29	46,994.46	50,686	42,040.79	49,756.69	58,888.73	69,696.80	82,488.51
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	133,826.04	84,677.25	109,072.62	91,278.75	185,547.23	157,238.05	186,096.55	220,251.55	260,675.16	308,517.85
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	1,832.27	2,114.41	2,861.28	3,164.18	4,080.63	3,789.87	4,485.44	5,308.68	6,283	7,436.14
Inventories (%)
Accounts Payable	10,002.01	14,552.42	15,675.82	15,513.29	31,518.20	22,781.93	26,963.18	31,911.84	37,768.74	44,700.58
Accounts Payable (%)
Capital Expenditure	-12,202.15	-17,115.62	-10,883.06	-4,368.87	-3,468.81	-11,655.60	-13,794.80	-16,326.61	-19,323.09	-22,869.53
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 2,084.9
Beta	0.457
Diluted Shares Outstanding	384.82
Cost of Debt
Tax Rate	-0.13
After-tax Cost of Debt	6.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.641
Total Debt	368,778.37
Total Equity	802,313.42
Total Capital	1,171,091.79
Debt Weighting	31.49
Equity Weighting	68.51
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	225,005.18	281,652.20	353,688.59	142,098.96	259,309.27	306,901.28	363,228.04	429,892.66	508,792.49	602,173.10
EBITDA	39,006.78	11,055.20	55,728.15	10,232.90	12,729.31	30,154.60	35,688.99	42,239.12	49,991.43	59,166.55
EBIT	34,638.01	3,459.40	15,988.86	-36,761.56	-37,956.69	-11,886.19	-14,067.70	-16,649.60	-19,705.37	-23,321.97
Tax Rate	28.28%	206.70%	8.60%	0.20%	-0.13%	48.73%	48.73%	48.73%	48.73%	48.73%
EBIAT	24,841.35	-3,691.06	14,613.60	-36,687.99	-38,007.03	-6,094.09	-7,212.56	-8,536.31	-10,103.01	-11,957.26
Depreciation	4,368.77	7,595.80	39,739.29	46,994.46	50,686	42,040.79	49,756.69	58,888.73	69,696.80	82,488.51
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-282.14	-746.87	-302.90	-916.45	290.76	-695.57	-823.23	-974.32	-1,153.14
Accounts Payable	-	4,550.41	1,123.40	-162.53	16,004.91	-8,736.27	4,181.25	4,948.66	5,856.90	6,931.84
Capital Expenditure	-12,202.15	-17,115.62	-10,883.06	-4,368.87	-3,468.81	-11,655.60	-13,794.80	-16,326.61	-19,323.09	-22,869.53
UFCF	17,007.97	-8,942.61	43,846.36	5,472.17	24,298.62	15,845.58	32,235.02	38,151.23	45,153.27	53,440.42
WACC
PV UFCF						14,965.60	28,754.12	32,141.55	35,928.04	40,160.60
SUM PV UFCF										151,949.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.88
Free cash flow (t + 1)	54,509.23
Terminal Value	1,404,877.06
Present Value of Terminal Value	1,055,768.40

Intrinsic Value

Enterprise Value	1,207,718.30
Net Debt	358,625.08
Equity Value	849,093.22
Shares Outstanding	384.82
Equity Value Per Share	2,206.46