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	5,314.10	6,117.40	6,145.60	6,894.50	6,048.90	6,283.27	6,526.72	6,779.61	7,042.29	7,315.16
Revenue (%)
EBITDA	1,391.40	1,236.70	1,356	2,460.90	1,091.30	1,535.62	1,595.12	1,656.92	1,721.12	1,787.81
EBITDA (%)
EBIT	1,249.30	1,059.10	1,152.50	2,255.60	911.86	1,349.22	1,401.50	1,455.80	1,512.21	1,570.80
EBIT (%)
Depreciation	142.10	177.60	203.50	205.30	179.44	186.40	193.62	201.12	208.91	217.01
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	1,805.40	10,511.60	10,622.40	2,147.10	2,231.30	5,613.23	5,830.72	6,056.64	6,291.31	6,535.07
Total Cash (%)
Account Receivables	906.10	1,191.20	1,026	1,410.40	1,114.13	1,157.30	1,202.14	1,248.72	1,297.10	1,347.36
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	284.30	414.60	348.90	312.50	337.79	350.88	364.47	378.59	393.26	408.50
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	5,314.10	6,117.40	6,145.60	6,894.50	6,048.90	6,283.27	6,526.72	6,779.61	7,042.29	7,315.16
EBITDA	1,391.40	1,236.70	1,356	2,460.90	1,091.30	1,535.62	1,595.12	1,656.92	1,721.12	1,787.81
EBIT	1,249.30	1,059.10	1,152.50	2,255.60	911.86	1,349.22	1,401.50	1,455.80	1,512.21	1,570.80
Tax Rate	22.43%	29.25%	28.76%	34.82%	45.19%	32.09%	32.09%	32.09%	32.09%	32.09%
EBIAT	969.06	749.28	821.01	1,470.18	499.81	916.24	951.74	988.62	1,026.92	1,066.71
Depreciation	142.10	177.60	203.50	205.30	179.44	186.40	193.62	201.12	208.91	217.01
Accounts Receivable	-	-285.10	165.20	-384.40	296.27	-43.17	-44.84	-46.58	-48.38	-50.26
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	130.30	-65.70	-36.40	25.29	13.09	13.60	14.12	14.67	15.24
Capital Expenditure	-102.50	-124.30	-115	-108.80	-112.06	-116.40	-120.91	-125.59	-130.46	-135.51
UFCF	1,008.66	647.78	1,009.01	1,145.88	888.76	956.16	993.21	1,031.69	1,071.66	1,113.19
WACC
PV UFCF						869.16	820.68	774.91	731.69	690.89
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