Discounted Cash Flow (DCF) Analysis Unlevered

T. Rowe Price Group, Inc. (TROW)

$117.46

+3.98 (+3.51%)
All numbers are in Millions, Currency in USD
Stock DCF: 46.28 | 117.46 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 5,617.906,206.707,671.906,488.406,460.506,754.967,062.837,384.747,721.328,073.24
Revenue (%)
EBITDA 1,853.702,247.203,419.503,026.501,986.202,582.592,700.302,823.372,952.063,086.60
EBITDA (%)
EBIT 1,662.902,057.603,214.702,380.701,597.202,243.562,345.822,452.732,564.522,681.41
EBIT (%)
Depreciation 190.80189.60204.80645.80389339.03354.48370.64387.53405.19
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 1,781.802,151.701,523.101,755.602,066.601,962.752,052.212,145.752,243.552,345.80
Total Cash (%)
Account Receivables 646.60863.101,058.30748.70614.90814.20851.31890.11930.68973.10
Account Receivables (%)
Inventories -3,039.802,112.902,319.201,813.151,895.791,982.202,072.542,1672,265.77
Inventories (%)
Accounts Payable 214.50187.70431406.70409.50338.65354.09370.22387.10404.74
Accounts Payable (%)
Capital Expenditure -204.60-214.60-239.10-237.60-307.90-251.88-263.36-275.36-287.91-301.03
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 117.46
Beta 1.402
Diluted Shares Outstanding 224.80
Cost of Debt
Tax Rate 28.17
After-tax Cost of Debt 756.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.827
Total Debt 397.90
Total Equity 26,405.01
Total Capital 26,802.91
Debt Weighting 1.48
Equity Weighting 98.52
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 5,617.906,206.707,671.906,488.406,460.506,754.967,062.837,384.747,721.328,073.24
EBITDA 1,853.702,247.203,419.503,026.501,986.202,582.592,700.302,823.372,952.063,086.60
EBIT 1,662.902,057.603,214.702,380.701,597.202,243.562,345.822,452.732,564.522,681.41
Tax Rate 27.19%26.82%22.82%20.03%28.17%25.01%25.01%25.01%25.01%25.01%
EBIAT 1,210.721,505.792,4811,903.751,147.221,682.491,759.171,839.351,923.182,010.84
Depreciation 190.80189.60204.80645.80389339.03354.48370.64387.53405.19
Accounts Receivable --216.50-195.20309.60133.80-199.30-37.11-38.80-40.57-42.42
Inventories --926.90-206.30506.05-82.64-86.41-90.34-94.46-98.77
Accounts Payable --26.80243.30-24.302.80-70.8515.4316.1416.8717.64
Capital Expenditure -204.60-214.60-239.10-237.60-307.90-251.88-263.36-275.36-287.91-301.03
UFCF 1,196.921,237.493,421.702,390.951,870.971,416.851,742.211,821.621,904.651,991.46
WACC
PV UFCF 1,162.301,172.451,005.65862.58739.86
SUM PV UFCF 4,942.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 21.90
Free cash flow (t + 1) 2,031.29
Terminal Value 10,207.46
Present Value of Terminal Value 3,792.27

Intrinsic Value

Enterprise Value 8,735.12
Net Debt -1,668.70
Equity Value 10,403.82
Shares Outstanding 224.80
Equity Value Per Share 46.28