Discounted Cash Flow (DCF) Analysis Unlevered

The Interpublic Group of Companies,... (IPG)

$35.04

+0.01 (+0.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.99 | 35.04 | 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 9,714.4010,221.309,06110,240.7010,927.8011,299.2211,683.2612,080.3512,490.9412,915.48
Revenue (%)
EBITDA 1,1441,338.60841.901,661.501,705.101,491.311,5421,594.411,648.601,704.63
EBITDA (%)
EBIT 941.101,060.10551.301,377.701,431.101,190.771,231.241,273.091,316.361,361.10
EBIT (%)
Depreciation 202.90278.50290.60283.80274300.54310.76321.32332.24343.53
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 673.401,192.202,5093,2702,545.302,293.952,371.922,452.542,535.892,622.08
Total Cash (%)
Account Receivables 7,027.207,143.306,467.107,524.905,3167,586.847,844.708,111.338,387.028,672.08
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 6,698.107,205.407,269.708,9608,235.308,644.588,938.399,242.199,556.319,881.12
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 $ 35.04
Beta 1.113
Diluted Shares Outstanding 395.10
Cost of Debt
Tax Rate 26.08
After-tax Cost of Debt 3.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.635
Total Debt 4,295.70
Total Equity 13,844.30
Total Capital 18,140
Debt Weighting 23.68
Equity Weighting 76.32
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 9,714.4010,221.309,06110,240.7010,927.8011,299.2211,683.2612,080.3512,490.9412,915.48
EBITDA 1,1441,338.60841.901,661.501,705.101,491.311,5421,594.411,648.601,704.63
EBIT 941.101,060.10551.301,377.701,431.101,190.771,231.241,273.091,316.361,361.10
Tax Rate 26.15%25.31%2.82%22.04%26.08%20.48%20.48%20.48%20.48%20.48%
EBIAT 695.04791.79535.741,074.111,057.90946.92979.101,012.381,046.791,082.37
Depreciation 202.90278.50290.60283.80274300.54310.76321.32332.24343.53
Accounts Receivable --116.10676.20-1,057.802,208.90-2,270.84-257.86-266.63-275.69-285.06
Inventories ----------
Accounts Payable -507.3064.301,690.30-724.70409.28293.81303.80314.13324.80
Capital Expenditure -177.10-198.50-167.50-195.30-178.10-206.79-213.82-221.08-228.60-236.37
UFCF 720.841,262.991,399.341,795.112,638-820.891,111.991,149.791,188.871,229.27
WACC
PV UFCF -765.05965.83930.72896.88864.27
SUM PV UFCF 2,892.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.30
Free cash flow (t + 1) 1,253.86
Terminal Value 23,657.70
Present Value of Terminal Value 16,633.13

Intrinsic Value

Enterprise Value 19,525.78
Net Debt 1,750.40
Equity Value 17,775.38
Shares Outstanding 395.10
Equity Value Per Share 44.99