Discounted Cash Flow (DCF) Analysis Unlevered
The Interpublic Group of Companies,... (IPG)
$38.67
+0.92 (+2.44%)
All numbers are in Millions, Currency in USD
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 | 9,714.40 | 10,221.30 | 9,061 | 10,240.70 | 10,927.80 | 11,299.22 | 11,683.26 | 12,080.35 | 12,490.94 | 12,915.48 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 1,144 | 1,338.60 | 841.90 | 1,661.50 | 1,705.10 | 1,491.31 | 1,542 | 1,594.41 | 1,648.60 | 1,704.63 |
EBITDA (%) | ||||||||||
EBIT | 941.10 | 1,060.10 | 551.30 | 1,377.70 | 1,431.10 | 1,190.77 | 1,231.24 | 1,273.09 | 1,316.36 | 1,361.10 |
EBIT (%) | ||||||||||
Depreciation | 202.90 | 278.50 | 290.60 | 283.80 | 274 | 300.54 | 310.76 | 321.32 | 332.24 | 343.53 |
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 | 673.40 | 1,192.20 | 2,509 | 3,270 | 2,545.30 | 2,293.95 | 2,371.92 | 2,452.54 | 2,535.89 | 2,622.08 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 7,027.20 | 7,143.30 | 6,467.10 | 7,524.90 | 7,339 | 8,005.19 | 8,277.27 | 8,558.60 | 8,849.50 | 9,150.27 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | - | - | - | - | - | - | - |
Inventories (%) | ||||||||||
Accounts Payable | 6,698.10 | 7,205.40 | 7,269.70 | 8,960 | 8,235.30 | 8,644.58 | 8,938.39 | 9,242.19 | 9,556.31 | 9,881.12 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -177.10 | -198.50 | -167.50 | -195.30 | -178.10 | -206.79 | -213.82 | -221.08 | -228.60 | -236.37 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 38.67 |
---|---|
Beta | 1.116 |
Diluted Shares Outstanding | 395.10 |
Cost of Debt | |
Tax Rate | 26.08 |
After-tax Cost of Debt | 2.85% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.959 |
Total Debt | 4,531.60 |
Total Equity | 15,278.52 |
Total Capital | 19,810.12 |
Debt Weighting | 22.88 |
Equity Weighting | 77.12 |
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 | 9,714.40 | 10,221.30 | 9,061 | 10,240.70 | 10,927.80 | 11,299.22 | 11,683.26 | 12,080.35 | 12,490.94 | 12,915.48 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 1,144 | 1,338.60 | 841.90 | 1,661.50 | 1,705.10 | 1,491.31 | 1,542 | 1,594.41 | 1,648.60 | 1,704.63 |
EBIT | 941.10 | 1,060.10 | 551.30 | 1,377.70 | 1,431.10 | 1,190.77 | 1,231.24 | 1,273.09 | 1,316.36 | 1,361.10 |
Tax Rate | 26.15% | 25.31% | 2.82% | 22.04% | 26.08% | 20.48% | 20.48% | 20.48% | 20.48% | 20.48% |
EBIAT | 695.04 | 791.79 | 535.74 | 1,074.11 | 1,057.90 | 946.92 | 979.10 | 1,012.38 | 1,046.79 | 1,082.37 |
Depreciation | 202.90 | 278.50 | 290.60 | 283.80 | 274 | 300.54 | 310.76 | 321.32 | 332.24 | 343.53 |
Accounts Receivable | - | -116.10 | 676.20 | -1,057.80 | 185.90 | -666.19 | -272.08 | -281.33 | -290.89 | -300.78 |
Inventories | - | - | - | - | - | - | - | - | - | - |
Accounts Payable | - | 507.30 | 64.30 | 1,690.30 | -724.70 | 409.28 | 293.81 | 303.80 | 314.13 | 324.80 |
Capital Expenditure | -177.10 | -198.50 | -167.50 | -195.30 | -178.10 | -206.79 | -213.82 | -221.08 | -228.60 | -236.37 |
UFCF | 720.84 | 1,262.99 | 1,399.34 | 1,795.11 | 615 | 783.75 | 1,097.77 | 1,135.08 | 1,173.66 | 1,213.55 |
WACC | ||||||||||
PV UFCF | 728.67 | 948.88 | 912.17 | 876.88 | 842.96 | |||||
SUM PV UFCF | 4,309.55 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.56 |
Free cash flow (t + 1) | 1,237.83 |
Terminal Value | 22,263.04 |
Present Value of Terminal Value | 15,464.31 |
Intrinsic Value
Enterprise Value | 19,773.86 |
---|---|
Net Debt | 1,986.30 |
Equity Value | 17,787.56 |
Shares Outstanding | 395.10 |
Equity Value Per Share | 45.02 |