Discounted Cash Flow (DCF) Analysis Unlevered

KKR & Co. Inc. (KKR)

$74.7

+5.32 (+7.67%)

All numbers are in Millions, Currency in USD

Stock DCF: 242.91 | 74.7 | 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	2,395.84	4,220.90	4,230.89	16,236.15	5,721.19	9,946.34	17,291.79	30,061.91	52,262.86	90,859.37
Revenue (%)
EBITDA	1,702.89	2,730.98	2,701.20	7,397.37	1,786.70	5,498.61	9,559.38	16,619.06	28,892.36	50,229.60
EBITDA (%)
EBIT	1,702.89	2,730.98	2,701.20	7,010.51	1,422.54	5,063.57	8,803.05	15,304.17	26,606.42	46,255.46
EBIT (%)
Depreciation	-	-	-	386.87	364.16	435.05	756.33	1,314.89	2,285.95	3,974.14
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	1,751.29	2,346.71	5,363.01	10,091.60	12,823.56	10,776.85	18,735.63	32,572.04	56,626.73	98,446.01
Total Cash (%)
Account Receivables	1,424.30	1,051.50	1,935.89	29,008.60	32,041.06	17,283.26	30,047.07	52,237.07	90,814.54	157,881.76
Account Receivables (%)
Inventories	-1,713.38	-3,018.57	-3,025.71	-11,611.24	-4,091.50	-7,113.10	-12,366.18	-21,498.70	-37,375.65	-64,977.85
Inventories (%)
Accounts Payable	1,053.53	1,567.33	2,047.33	3,863.93	2,114.52	3,784.66	6,579.66	11,438.79	19,886.42	34,572.68
Accounts Payable (%)
Capital Expenditure	-105.23	-207.36	-153.39	-102.05	-85.06	-299.29	-520.32	-904.59	-1,572.63	-2,734.03
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 74.7
Beta	1.501
Diluted Shares Outstanding	749.50
Cost of Debt
Tax Rate	3.37
After-tax Cost of Debt	4.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.304
Total Debt	44,075
Total Equity	55,988.02
Total Capital	100,063.02
Debt Weighting	44.05
Equity Weighting	55.95
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	2,395.84	4,220.90	4,230.89	16,236.15	5,721.19	9,946.34	17,291.79	30,061.91	52,262.86	90,859.37
EBITDA	1,702.89	2,730.98	2,701.20	7,397.37	1,786.70	5,498.61	9,559.38	16,619.06	28,892.36	50,229.60
EBIT	1,702.89	2,730.98	2,701.20	7,010.51	1,422.54	5,063.57	8,803.05	15,304.17	26,606.42	46,255.46
Tax Rate	49.88%	10.23%	10.64%	9.92%	3.37%	16.81%	16.81%	16.81%	16.81%	16.81%
EBIAT	853.44	2,451.59	2,413.90	6,315.40	1,374.63	4,212.56	7,323.56	12,732.06	22,134.79	38,481.50
Depreciation	-	-	-	386.87	364.16	435.05	756.33	1,314.89	2,285.95	3,974.14
Accounts Receivable	-	372.79	-884.38	-27,072.72	-3,032.46	14,757.81	-12,763.82	-22,189.99	-38,577.47	-67,067.23
Inventories	-	1,305.19	7.15	8,585.53	-7,519.74	3,021.60	5,253.08	9,132.52	15,876.95	27,602.20
Accounts Payable	-	513.80	480	1,816.60	-1,749.41	1,670.14	2,795	4,859.13	8,447.63	14,686.27
Capital Expenditure	-105.23	-207.36	-153.39	-102.05	-85.06	-299.29	-520.32	-904.59	-1,572.63	-2,734.03
UFCF	748.21	4,436.01	1,863.27	-10,070.37	-10,647.88	23,797.86	2,843.83	4,944.02	8,595.22	14,942.85
WACC
PV UFCF						22,010.60	2,432.72	3,911.67	6,289.74	10,113.54
SUM PV UFCF										44,758.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.12
Free cash flow (t + 1)	15,241.71
Terminal Value	249,047.49
Present Value of Terminal Value	168,559.02

Intrinsic Value

Enterprise Value	213,317.28
Net Debt	31,251.44
Equity Value	182,065.84
Shares Outstanding	749.50
Equity Value Per Share	242.91