Discounted Cash Flow (DCF) Analysis Unlevered

Thomson Reuters Corporation (TRI.TO)

$146.77

-0.33 (-0.22%)
All numbers are in Millions, Currency in USD
Stock DCF: 571.70 | 146.77 | 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 11,3335,5015,9065,9846,3485,765.665,236.744,756.344,320.013,923.71
Revenue (%)
EBITDA 2,9545,0071,2902,1868,2623,524.083,200.792,907.172,640.472,398.25
EBITDA (%)
EBIT 1,4914,3885731,3947,4922,812.982,554.932,320.552,107.671,914.32
EBIT (%)
Depreciation 1,463619717792770711.10645.87586.62532.80483.93
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 9722,7821,3582,3998861,570.451,426.391,295.541,176.691,068.74
Total Cash (%)
Account Receivables 1,4571,3131,2391,2161,0571,091.73991.58900.61818742.96
Account Receivables (%)
Inventories 3133232626.9424.4722.2220.1818.3316.65
Inventories (%)
Accounts Payable 3073262652171,363440.72400.29363.57330.22299.93
Accounts Payable (%)
Capital Expenditure -950-576-505-504-487-501.59-455.58-413.78-375.83-341.35
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 146.77
Beta 0.268
Diluted Shares Outstanding 494.50
Cost of Debt
Tax Rate -439.75
After-tax Cost of Debt 5.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.064
Total Debt 3,786
Total Equity 72,578.43
Total Capital 76,364.43
Debt Weighting 4.96
Equity Weighting 95.04
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 11,3335,5015,9065,9846,3485,765.665,236.744,756.344,320.013,923.71
EBITDA 2,9545,0071,2902,1868,2623,524.083,200.792,907.172,640.472,398.25
EBIT 1,4914,3885731,3947,4922,812.982,554.932,320.552,107.671,914.32
Tax Rate -17.23%-640.90%-61.07%36.39%-439.75%-224.51%-224.51%-224.51%-224.51%-224.51%
EBIAT 1,747.8532,510.72922.94886.6640,438.329,128.448,291.037,530.446,839.636,212.19
Depreciation 1,463619717792770711.10645.87586.62532.80483.93
Accounts Receivable -1447423159-34.73100.1590.9682.6275.04
Inventories --210-3-0.942.472.242.041.851.68
Accounts Payable -19-61-481,146-922.28-40.43-36.72-33.35-30.29
Capital Expenditure -950-576-505-504-487-501.59-455.58-413.78-375.83-341.35
UFCF 2,260.8532,714.721,157.941,146.6642,025.388,383.418,543.287,759.567,047.726,401.19
WACC
PV UFCF 8,051.687,880.556,874.395,996.705,231.07
SUM PV UFCF 34,034.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.12
Free cash flow (t + 1) 6,529.22
Terminal Value 307,981.93
Present Value of Terminal Value 251,683.32

Intrinsic Value

Enterprise Value 285,717.71
Net Debt 3,008
Equity Value 282,709.71
Shares Outstanding 494.50
Equity Value Per Share 571.70