Discounted Cash Flow (DCF) Analysis Unlevered

The Toronto-Dominion Bank (TD)

$61.33

-0.64 (-1.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 299.62 | 61.33 | 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 35,83538,52839,74343,28442,26644,086.2345,984.8447,965.2250,030.8952,185.52
Revenue (%)
EBITDA 22,94130,01833,87625,22425,43530,474.3631,786.7733,155.6934,583.5836,072.95
EBITDA (%)
EBIT 21,63428,62732,47123,08323,36928,655.5929,889.6831,176.9032,519.5733,920.05
EBIT (%)
Depreciation 1,3071,3911,4052,1412,0661,818.761,897.091,978.792,064.012,152.90
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 76,21953,96752,621223,816209,498132,075.49137,763.44143,696.36149,884.78156,339.72
Total Cash (%)
Account Receivables 40,68039,83534,59149,38045,55946,363.2148,359.8950,442.5552,614.9154,880.82
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 38,33134,62630,36842,85637,20640,584.7142,332.5344,155.6246,057.2348,040.73
Accounts Payable (%)
Capital Expenditure -434-587-794-1,757-1,129-1,010.71-1,054.24-1,099.64-1,147-1,196.40
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 61.33
Beta 0.882
Diluted Shares Outstanding 1,820.20
Cost of Debt
Tax Rate 16.55
After-tax Cost of Debt 10.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.969
Total Debt 45,470
Total Equity 111,632.87
Total Capital 157,102.87
Debt Weighting 28.94
Equity Weighting 71.06
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 35,83538,52839,74343,28442,26644,086.2345,984.8447,965.2250,030.8952,185.52
EBITDA 22,94130,01833,87625,22425,43530,474.3631,786.7733,155.6934,583.5836,072.95
EBIT 21,63428,62732,47123,08323,36928,655.5929,889.6831,176.9032,519.5733,920.05
Tax Rate 15.62%18.23%11.80%0.16%16.55%12.47%12.47%12.47%12.47%12.47%
EBIAT 18,253.9623,407.9228,639.4823,046.1919,500.9925,081.3126,161.4627,288.1328,463.3229,689.12
Depreciation 1,3071,3911,4052,1412,0661,818.761,897.091,978.792,064.012,152.90
Accounts Receivable -8455,244-14,7893,821-804.21-1,996.68-2,082.67-2,172.36-2,265.91
Inventories ----------
Accounts Payable --3,705-4,25812,488-5,6503,378.711,747.821,823.091,901.601,983.50
Capital Expenditure -434-587-794-1,757-1,129-1,010.71-1,054.24-1,099.64-1,147-1,196.40
UFCF 19,126.9621,351.9230,236.4821,129.1918,608.9928,463.8626,755.4527,907.7029,109.5730,363.21
WACC
PV UFCF 26,219.4722,702.4521,812.9620,958.3220,137.17
SUM PV UFCF 111,830.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.56
Free cash flow (t + 1) 30,970.47
Terminal Value 472,110.84
Present Value of Terminal Value 313,108.46

Intrinsic Value

Enterprise Value 424,938.83
Net Debt -120,423
Equity Value 545,361.83
Shares Outstanding 1,820.20
Equity Value Per Share 299.62