Discounted Cash Flow (DCF) Analysis Unlevered

Thomson Reuters Corporation (TRI)

$114.4

+0.35 (+0.31%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,430.57 | 114.4 | 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 5,2975,5015,9065,9846,3486,643.456,952.667,276.257,614.917,969.33
Revenue (%)
EBITDA 3,2914,9212,4432,1868,2624,778.415,000.815,233.565,477.145,732.06
EBITDA (%)
EBIT 1,8284,3021,7261,3947,4923,763.593,938.764,122.084,313.934,514.71
EBIT (%)
Depreciation 1,4636197177927701,014.821,062.051,111.481,163.211,217.35
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 9722,7821,3582,3998861,939.402,029.672,124.142,2232,326.46
Total Cash (%)
Account Receivables 1,5101,3821,2391,2161,0571,482.551,551.551,623.771,699.341,778.43
Account Receivables (%)
Inventories 3133232631.8833.3734.9236.5538.2540.03
Inventories (%)
Accounts Payable 3073262652171,363548.84574.38601.11629.09658.37
Accounts Payable (%)
Capital Expenditure -950-576-505-504-487-704.87-737.68-772.01-807.95-845.55
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 114.4
Beta 0.268
Diluted Shares Outstanding 498.03
Cost of Debt
Tax Rate -439.75
After-tax Cost of Debt 5.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.032
Total Debt 3,786
Total Equity 56,974.86
Total Capital 60,760.86
Debt Weighting 6.23
Equity Weighting 93.77
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 5,2975,5015,9065,9846,3486,643.456,952.667,276.257,614.917,969.33
EBITDA 3,2914,9212,4432,1868,2624,778.415,000.815,233.565,477.145,732.06
EBIT 1,8284,3021,7261,3947,4923,763.593,938.764,122.084,313.934,514.71
Tax Rate -175.15%-637.90%-61.07%36.39%-439.75%-255.50%-255.50%-255.50%-255.50%-255.50%
EBIAT 5,029.7031,744.402,780.09886.6640,438.3213,379.3814,002.1014,653.7915,335.8216,049.59
Depreciation 1,4636197177927701,014.821,062.051,111.481,163.211,217.35
Accounts Receivable -12814323159-425.55-69-72.21-75.57-79.09
Inventories --210-3-5.88-1.48-1.55-1.63-1.70-1.78
Accounts Payable -19-61-481,146-814.1625.5426.7327.9829.28
Capital Expenditure -950-576-505-504-487-704.87-737.68-772.01-807.95-845.55
UFCF 5,542.7031,932.403,084.091,146.6642,020.4312,448.1314,281.4514,946.1515,641.7916,369.80
WACC
PV UFCF 11,957.8513,178.6513,248.8213,319.3613,390.28
SUM PV UFCF 65,094.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.10
Free cash flow (t + 1) 16,697.19
Terminal Value 795,104.51
Present Value of Terminal Value 650,385.08

Intrinsic Value

Enterprise Value 715,480.05
Net Debt 3,008
Equity Value 712,472.05
Shares Outstanding 498.03
Equity Value Per Share 1,430.57