Discounted Cash Flow (DCF) Analysis Unlevered

IHS Markit Ltd. (INFO)

$108.61

+0.80 (+0.74%)

All numbers are in Millions, Currency in USD

Stock DCF: 57.04 | 108.61 | overvalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	3,599.70	4,009.20	4,414.60	4,287.80	4,658.10	4,975.45	5,314.42	5,676.49	6,063.22	6,476.30
Revenue (%)
EBITDA	1,013.80	1,193.80	1,578.10	1,712.20	2,148.80	1,788.67	1,910.53	2,040.69	2,179.72	2,328.22
EBITDA (%)
EBIT	521.30	652.60	1,005	1,120.60	1,562.30	1,126.43	1,203.17	1,285.14	1,372.70	1,466.22
EBIT (%)
Depreciation	492.50	541.20	573.10	591.60	586.50	662.24	707.36	755.55	807.02	862.01
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	133.80	120	111.50	125.60	293.10	183.67	196.18	209.55	223.82	239.07
Total Cash (%)
Account Receivables	725.40	813.70	890.70	891.70	906.50	1,003.85	1,072.25	1,145.30	1,223.32	1,306.67
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	53.40	63.80	59.70	48.20	71.70	70.56	75.36	80.50	85.98	91.84
Accounts Payable (%)
Capital Expenditure	-260.20	-222.70	-278.10	-274.80	-294.30	-316.53	-338.10	-361.13	-385.74	-412.02
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 108.61
Beta	1.046
Diluted Shares Outstanding	401.30
Cost of Debt
Tax Rate	10.04
After-tax Cost of Debt	3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.430
Total Debt	4,957.40
Total Equity	43,585.19
Total Capital	48,542.59
Debt Weighting	10.21
Equity Weighting	89.79
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	3,599.70	4,009.20	4,414.60	4,287.80	4,658.10	4,975.45	5,314.42	5,676.49	6,063.22	6,476.30
EBITDA	1,013.80	1,193.80	1,578.10	1,712.20	2,148.80	1,788.67	1,910.53	2,040.69	2,179.72	2,328.22
EBIT	521.30	652.60	1,005	1,120.60	1,562.30	1,126.43	1,203.17	1,285.14	1,372.70	1,466.22
Tax Rate	-12.04%	-27.81%	32.33%	1.43%	10.04%	0.79%	0.79%	0.79%	0.79%	0.79%
EBIAT	584.06	834.09	680.06	1,104.62	1,405.43	1,117.53	1,193.67	1,274.99	1,361.85	1,454.64
Depreciation	492.50	541.20	573.10	591.60	586.50	662.24	707.36	755.55	807.02	862.01
Accounts Receivable	-	-88.30	-77	-1	-14.80	-97.35	-68.39	-73.05	-78.03	-83.34
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	10.40	-4.10	-11.50	23.50	-1.14	4.81	5.13	5.48	5.86
Capital Expenditure	-260.20	-222.70	-278.10	-274.80	-294.30	-316.53	-338.10	-361.13	-385.74	-412.02
UFCF	816.36	1,074.69	893.96	1,408.92	1,706.33	1,364.74	1,499.34	1,601.49	1,710.60	1,827.14
WACC
PV UFCF						1,263.88	1,285.92	1,272.02	1,258.27	1,244.67
SUM PV UFCF										6,324.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.98
Free cash flow (t + 1)	1,863.68
Terminal Value	31,165.25
Present Value of Terminal Value	21,230.20

Intrinsic Value

Enterprise Value	27,554.96
Net Debt	4,664.30
Equity Value	22,890.66
Shares Outstanding	401.30
Equity Value Per Share	57.04