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 225,005.18281,652.20353,688.59142,098.96259,309.27306,901.28363,228.04429,892.66508,792.49602,173.10
Revenue (%)
EBITDA 39,006.7811,055.2055,728.1510,232.9012,729.3130,154.6035,688.9942,239.1249,991.4359,166.55
EBITDA (%)
EBIT 34,638.013,459.4015,988.86-36,761.56-37,956.69-11,886.19-14,067.70-16,649.60-19,705.37-23,321.97
EBIT (%)
Depreciation 4,368.777,595.8039,739.2946,994.4650,68642,040.7949,756.6958,888.7369,696.8082,488.51
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 133,826.0484,677.25109,072.6291,278.75185,547.23157,238.05186,096.55220,251.55260,675.16308,517.85
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories 1,832.272,114.412,861.283,164.184,080.633,789.874,485.445,308.686,2837,436.14
Inventories (%)
Accounts Payable 10,002.0114,552.4215,675.8215,513.2931,518.2022,781.9326,963.1831,911.8437,768.7444,700.58
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 225,005.18281,652.20353,688.59142,098.96259,309.27306,901.28363,228.04429,892.66508,792.49602,173.10
EBITDA 39,006.7811,055.2055,728.1510,232.9012,729.3130,154.6035,688.9942,239.1249,991.4359,166.55
EBIT 34,638.013,459.4015,988.86-36,761.56-37,956.69-11,886.19-14,067.70-16,649.60-19,705.37-23,321.97
Tax Rate 28.28%206.70%8.60%0.20%-0.13%48.73%48.73%48.73%48.73%48.73%
EBIAT 24,841.35-3,691.0614,613.60-36,687.99-38,007.03-6,094.09-7,212.56-8,536.31-10,103.01-11,957.26
Depreciation 4,368.777,595.8039,739.2946,994.4650,68642,040.7949,756.6958,888.7369,696.8082,488.51
Accounts Receivable ----------
Inventories --282.14-746.87-302.90-916.45290.76-695.57-823.23-974.32-1,153.14
Accounts Payable -4,550.411,123.40-162.5316,004.91-8,736.274,181.254,948.665,856.906,931.84
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 17,007.97-8,942.6143,846.365,472.1724,298.6215,845.5832,235.0238,151.2345,153.2753,440.42
WACC
PV UFCF 14,965.6028,754.1232,141.5535,928.0440,160.60
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