Discounted Cash Flow (DCF) Analysis Unlevered

The Procter & Gamble Company (PG)

$151.58

-0.56 (-0.37%)

All numbers are in Millions, Currency in USD

Stock DCF: 160.17 | 151.58 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	67,684	70,950	76,118	80,187	82,006	86,049.61	90,292.60	94,744.80	99,416.54	104,318.64
Revenue (%)
EBITDA	17,747	19,312	20,852	21,241	21,823	23,050.05	24,186.61	25,379.22	26,630.64	27,943.76
EBITDA (%)
EBIT	14,923	16,299	18,117	18,434	19,109	19,810.77	20,787.61	21,812.62	22,888.17	24,016.75
EBIT (%)
Depreciation	2,824	3,013	2,735	2,807	2,714	3,239.28	3,399.01	3,566.61	3,742.47	3,927.01
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	10,287	16,181	10,288	7,214	8,246	12,145.46	12,744.34	13,372.75	14,032.14	14,724.05
Total Cash (%)
Account Receivables	4,951	4,178	4,725	5,143	5,471	5,592.57	5,868.34	6,157.70	6,461.32	6,779.92
Account Receivables (%)
Inventories	5,017	5,498	5,983	6,924	7,073	6,932.41	7,274.24	7,632.92	8,009.29	8,404.22
Inventories (%)
Accounts Payable	11,260	12,071	13,720	14,882	14,598	15,150.65	15,897.71	16,681.61	17,504.16	18,367.26
Accounts Payable (%)
Capital Expenditure	-3,347	-3,073	-2,787	-3,156	-3,062	-3,546.51	-3,721.38	-3,904.88	-4,097.42	-4,299.46
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 151.58
Beta	0.410
Diluted Shares Outstanding	2,483.90
Cost of Debt
Tax Rate	20.16
After-tax Cost of Debt	1.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.375
Total Debt	34,607
Total Equity	376,509.56
Total Capital	411,116.56
Debt Weighting	8.42
Equity Weighting	91.58
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	67,684	70,950	76,118	80,187	82,006	86,049.61	90,292.60	94,744.80	99,416.54	104,318.64
EBITDA	17,747	19,312	20,852	21,241	21,823	23,050.05	24,186.61	25,379.22	26,630.64	27,943.76
EBIT	14,923	16,299	18,117	18,434	19,109	19,810.77	20,787.61	21,812.62	22,888.17	24,016.75
Tax Rate	35.79%	17.73%	18.79%	18.08%	20.16%	22.11%	22.11%	22.11%	22.11%	22.11%
EBIAT	9,582.29	13,409.57	14,713.70	15,101.64	15,256.59	15,431.06	16,191.94	16,990.34	17,828.11	18,707.19
Depreciation	2,824	3,013	2,735	2,807	2,714	3,239.28	3,399.01	3,566.61	3,742.47	3,927.01
Accounts Receivable	-	773	-547	-418	-328	-121.57	-275.76	-289.36	-303.63	-318.60
Inventories	-	-481	-485	-941	-149	140.59	-341.83	-358.68	-376.37	-394.93
Accounts Payable	-	811	1,649	1,162	-284	552.65	747.06	783.89	822.55	863.11
Capital Expenditure	-3,347	-3,073	-2,787	-3,156	-3,062	-3,546.51	-3,721.38	-3,904.88	-4,097.42	-4,299.46
UFCF	9,059.29	14,452.57	15,278.70	14,555.64	14,147.59	15,695.50	15,999.03	16,787.92	17,615.71	18,484.32
WACC
PV UFCF						14,808.47	14,241.77	14,099.45	13,958.56	13,819.08
SUM PV UFCF										70,927.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.99
Free cash flow (t + 1)	18,854.01
Terminal Value	472,531.48
Present Value of Terminal Value	353,269.61

Intrinsic Value

Enterprise Value	424,196.95
Net Debt	26,361
Equity Value	397,835.95
Shares Outstanding	2,483.90
Equity Value Per Share	160.17