Discounted Cash Flow (DCF) Analysis Unlevered

Shinhan Financial Group Co., Ltd. (SHG)

$24.63

-0.16 (-0.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 4,512,240.99 | 24.63 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,596,53715,892,380.0420,546,224.9920,863,212.9721,855,988.9624,285,421.3626,984,900.6429,984,444.2433,317,406.2237,020,848.15
Revenue (%)
EBITDA 7,974,913.019,719,350.0611,319,170.9410,330,173.9310,347,886.9213,004,541.2714,450,078.8716,056,297.1817,841,056.8919,824,204.02
EBITDA (%)
EBIT 7,721,568.959,417,434.1010,642,018.949,561,686.039,445,195.0212,288,374.3913,654,305.4815,172,068.5216,858,540.5818,732,474.75
EBIT (%)
Depreciation 253,344.06301,915.97677,152768,487.90902,691.90716,166.88795,773.39884,228.67982,516.321,091,729.26
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 65,944,22856,815,230.0488,989,368.9792,871,698.9894,369,371.04102,937,227.84114,379,356.43127,093,350.49141,220,585.98156,918,153.69
Total Cash (%)
Account Receivables 7,945,135.939,608,13912,056,643.9915,099,621.0415,425,489.0715,373,739.7917,082,628.9018,981,471.9221,091,383.4423,435,825.06
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 8,524,294.999,748,168.0311,894,763.9914,568,962.0914,041,740.0815,139,933.3616,822,833.3918,692,798.4820,770,622.1123,079,409.06
Accounts Payable (%)
Capital Expenditure -266,443-300,092.95-589,316.07-642,068.93-890,214.10-667,000.07-741,141.38-823,523.96-915,063.89-1,016,779.08
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 24.63
Beta 0.658
Diluted Shares Outstanding 513.23
Cost of Debt
Tax Rate 28.02
After-tax Cost of Debt 2.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.865
Total Debt 113,133,573
Total Equity 12,640.73
Total Capital 113,146,213.73
Debt Weighting 99.99
Equity Weighting 0.01
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,596,53715,892,380.0420,546,224.9920,863,212.9721,855,988.9624,285,421.3626,984,900.6429,984,444.2433,317,406.2237,020,848.15
EBITDA 7,974,913.019,719,350.0611,319,170.9410,330,173.9310,347,886.9213,004,541.2714,450,078.8716,056,297.1817,841,056.8919,824,204.02
EBIT 7,721,568.959,417,434.1010,642,018.949,561,686.039,445,195.0212,288,374.3913,654,305.4815,172,068.5216,858,540.5818,732,474.75
Tax Rate 23.14%29.33%30.70%28.17%28.02%27.87%27.87%27.87%27.87%27.87%
EBIAT 5,934,659.326,655,656.397,374,533.356,867,936.746,798,875.778,863,319.569,848,533.9810,943,261.2712,159,674.4713,511,299.75
Depreciation 253,344.06301,915.97677,152768,487.90902,691.90716,166.88795,773.39884,228.67982,516.321,091,729.26
Accounts Receivable --1,663,003.07-2,448,504.99-3,042,977.04-325,868.0451,749.28-1,708,889.11-1,898,843.02-2,109,911.52-2,344,441.62
Inventories ----------
Accounts Payable -1,223,873.042,146,595.952,674,198.10-527,222.011,098,193.281,682,900.031,869,965.092,077,823.622,308,786.96
Capital Expenditure -266,443-300,093-589,316-642,069-890,214-667,000.07-741,141.38-823,523.96-915,063.89-1,016,779.08
UFCF 5,921,560.396,218,349.387,160,460.246,625,576.775,958,263.5210,062,428.929,877,176.9210,975,088.0512,195,03913,550,595.27
WACC
PV UFCF 9,815,088.699,397,571.4810,185,496.8911,039,484.7411,965,073.93
SUM PV UFCF 52,402,715.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.52
Free cash flow (t + 1) 13,821,607.17
Terminal Value 2,658,001,379.48
Present Value of Terminal Value 2,346,995,270.51

Intrinsic Value

Enterprise Value 2,399,397,986.24
Net Debt 83,602,525
Equity Value 2,315,795,461.24
Shares Outstanding 513.23
Equity Value Per Share 4,512,240.99