Discounted Cash Flow (DCF) Analysis Unlevered

Invesco Ltd. (IVZ)

$20.04

-0.17 (-0.84%)
All numbers are in Millions, Currency in USD
Stock DCF: 29.91 | 20.04 | 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 5,314.106,117.406,145.606,894.506,048.906,283.276,526.726,779.617,042.297,315.16
Revenue (%)
EBITDA 1,391.401,236.701,3562,460.901,091.301,535.621,595.121,656.921,721.121,787.81
EBITDA (%)
EBIT 1,249.301,059.101,152.502,255.60911.861,349.221,401.501,455.801,512.211,570.80
EBIT (%)
Depreciation 142.10177.60203.50205.30179.44186.40193.62201.12208.91217.01
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 1,805.4010,511.6010,622.402,147.102,231.305,613.235,830.726,056.646,291.316,535.07
Total Cash (%)
Account Receivables 906.101,191.201,0261,410.401,114.131,157.301,202.141,248.721,297.101,347.36
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 284.30414.60348.90312.50337.79350.88364.47378.59393.26408.50
Accounts Payable (%)
Capital Expenditure -102.50-124.30-115-108.80-112.06-116.40-120.91-125.59-130.46-135.51
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.04
Beta 1.372
Diluted Shares Outstanding 465.40
Cost of Debt
Tax Rate 45.19
After-tax Cost of Debt 2.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.007
Total Debt -
Total Equity 9,326.62
Total Capital 9,326.62
Debt Weighting 0.00
Equity Weighting 100.00
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 5,314.106,117.406,145.606,894.506,048.906,283.276,526.726,779.617,042.297,315.16
EBITDA 1,391.401,236.701,3562,460.901,091.301,535.621,595.121,656.921,721.121,787.81
EBIT 1,249.301,059.101,152.502,255.60911.861,349.221,401.501,455.801,512.211,570.80
Tax Rate 22.43%29.25%28.76%34.82%45.19%32.09%32.09%32.09%32.09%32.09%
EBIAT 969.06749.28821.011,470.18499.81916.24951.74988.621,026.921,066.71
Depreciation 142.10177.60203.50205.30179.44186.40193.62201.12208.91217.01
Accounts Receivable --285.10165.20-384.40296.27-43.17-44.84-46.58-48.38-50.26
Inventories ----------
Accounts Payable -130.30-65.70-36.4025.2913.0913.6014.1214.6715.24
Capital Expenditure -102.50-124.30-115-108.80-112.06-116.40-120.91-125.59-130.46-135.51
UFCF 1,008.66647.781,009.011,145.88888.76956.16993.211,031.691,071.661,113.19
WACC
PV UFCF 869.16820.68774.91731.69690.89
SUM PV UFCF 3,887.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.01
Free cash flow (t + 1) 1,135.45
Terminal Value 14,175.39
Present Value of Terminal Value 8,797.81

Intrinsic Value

Enterprise Value 12,685.13
Net Debt -1,234.70
Equity Value 13,919.83
Shares Outstanding 465.40
Equity Value Per Share 29.91