Discounted Cash Flow (DCF) Analysis Unlevered

S&P Global Inc. (SPGI)

$334.52

+2.27 (+0.68%)

All numbers are in Millions, Currency in USD

Stock DCF: 284.76 | 334.52 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	6,258	6,699	7,442	8,297	9,116.39	10,016.69	11,005.91	12,092.81	13,287.06	14,599.25	16,041.02
Revenue (%)
EBITDA	2,858	3,152	3,575	4,222	4,367.78	4,799.13	5,273.08	5,793.83	6,366.01	6,994.70	7,685.47
EBITDA (%)
EBIT	2,652	2,948	3,369	4,044	4,111.37	4,517.40	4,963.52	5,453.71	5,992.30	6,584.08	7,234.30
EBIT (%)
Depreciation	206	204	206	178	256.41	281.73	309.55	340.12	373.71	410.62	451.17
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	1,935	2,894	4,117	6,508	4,737.79	5,205.67	5,719.77	6,284.64	6,905.29	7,587.23	8,336.52
Total Cash (%)
Account Receivables	1,449	1,577	1,593	1,650	2,005.32	2,203.36	2,420.95	2,660.04	2,922.74	3,211.38	3,528.52
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	211	190	233	205	269.15	295.73	324.94	357.03	392.29	431.03	473.59
Accounts Payable (%)
Capital Expenditure	-113	-115	-76	-35	-113.17	-124.34	-136.62	-150.12	-164.94	-181.23	-199.13
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 334.52
Beta	1.116
Diluted Shares Outstanding	241.80
Cost of Debt
Tax Rate	27.38
After-tax Cost of Debt	3.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.648
Total Debt	11,533
Total Equity	80,886.94
Total Capital	92,419.94
Debt Weighting	12.48
Equity Weighting	87.52
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	6,258	6,699	7,442	8,297	9,116.39	10,016.69	11,005.91	12,092.81	13,287.06	14,599.25	16,041.02
EBITDA	2,858	3,152	3,575	4,222	4,367.78	4,799.13	5,273.08	5,793.83	6,366.01	6,994.70	7,685.47
EBIT	2,652	2,948	3,369	4,044	4,111.37	4,517.40	4,963.52	5,453.71	5,992.30	6,584.08	7,234.30
Tax Rate	26.97%	27.54%	21.50%	27.38%	25.85%	25.85%	25.85%	25.85%	25.85%	25.85%	25.85%
EBIAT	1,936.82	2,136.04	2,644.69	2,936.85	3,048.72	3,349.80	3,680.61	4,044.10	4,443.48	4,882.30	5,364.46
Depreciation	206	204	206	178	256.41	281.73	309.55	340.12	373.71	410.62	451.17
Accounts Receivable	-	-128	-16	-57	-355.32	-198.04	-217.60	-239.09	-262.70	-288.64	-317.15
Inventories	-	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-21	43	-28	64.15	26.58	29.21	32.09	35.26	38.74	42.57
Capital Expenditure	-113	-115	-76	-35	-113.17	-124.34	-136.62	-150.12	-164.94	-181.23	-199.13
UFCF	2,029.82	2,076.04	2,801.69	2,994.85	2,900.79	3,335.73	3,665.15	4,027.11	4,424.82	4,861.80	5,341.93
WACC
PV UFCF					2,900.79	3,088.06	3,141.11	3,195.08	3,249.96	3,305.79	3,362.59
SUM PV UFCF											17,558.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.02
Free cash flow (t + 1)	5,448.77
Terminal Value	90,511.13
Present Value of Terminal Value	61,543.35

Intrinsic Value

Enterprise Value	79,101.50
Net Debt	10,246
Equity Value	68,855.50
Shares Outstanding	241.80
Equity Value Per Share	284.76