Discounted Cash Flow (DCF) Analysis Unlevered

T. Rowe Price Group, Inc. (TROW)

$108.72

+3.71 (+3.53%)
All numbers are in Millions, Currency in USD
Stock DCF: 237.96 | 108.72 | 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 4,7935,372.605,617.906,206.707,671.908,645.199,741.9710,977.8812,370.5813,939.98
Revenue (%)
EBITDA 2,565.302,612.903,000.503,281.204,1834,546.585,123.385,773.366,505.807,331.15
EBITDA (%)
EBIT 2,421.702,453.402,809.703,091.603,9794,285.934,829.675,442.386,132.836,910.87
EBIT (%)
Depreciation 143.60159.50190.80189.60204260.65293.72330.98372.97420.29
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 1,902.701,425.201,781.802,151.701,523.102,636.122,970.553,347.413,772.084,250.62
Total Cash (%)
Account Receivables 556.70549.60646.60863.101,058.301,055.661,189.581,340.501,510.561,702.20
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 215.50228.50214.50187.70299.04336.98379.73427.90482.19543.36
Accounts Payable (%)
Capital Expenditure -186.10-168.50-204.60-214.60-239-297.98-335.78-378.38-426.38-480.48
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 108.72
Beta 1.304
Diluted Shares Outstanding 231.20
Cost of Debt
Tax Rate 22.82
After-tax Cost of Debt 3.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.808
Total Debt -
Total Equity 25,136.06
Total Capital 25,136.06
Debt Weighting 0.00
Equity Weighting 100.00
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 4,7935,372.605,617.906,206.707,671.908,645.199,741.9710,977.8812,370.5813,939.98
EBITDA 2,565.302,612.903,000.503,281.204,1834,546.585,123.385,773.366,505.807,331.15
EBIT 2,421.702,453.402,809.703,091.603,9794,285.934,829.675,442.386,132.836,910.87
Tax Rate 40.21%22.94%27.19%26.82%22.82%28.00%28.00%28.00%28.00%28.00%
EBIAT 1,447.941,890.522,045.682,262.493,070.863,085.983,477.493,918.664,415.804,976.01
Depreciation 143.60159.50190.80189.60204260.65293.72330.98372.97420.29
Accounts Receivable -7.10-97-216.50-195.202.64-133.93-150.92-170.06-191.64
Inventories ----------
Accounts Payable -13-14-26.80111.3437.9442.7548.1754.2961.17
Capital Expenditure -186.10-168.50-204.60-214.60-239-297.98-335.78-378.38-426.38-480.48
UFCF 1,405.441,901.621,920.881,994.192,9523,089.243,344.253,768.524,246.614,785.35
WACC
PV UFCF 2,813.262,773.412,846.062,920.622,997.12
SUM PV UFCF 14,350.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.81
Free cash flow (t + 1) 4,881.06
Terminal Value 62,497.57
Present Value of Terminal Value 39,142.96

Intrinsic Value

Enterprise Value 53,493.43
Net Debt -1,523.10
Equity Value 55,016.53
Shares Outstanding 231.20
Equity Value Per Share 237.96