Discounted Cash Flow (DCF) Analysis Unlevered

Visa Inc. (V)

$178.04

-2.55 (-1.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 114.44 | 178.04 | overvalue

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 18,35820,60922,97721,84624,10525,862.8627,748.9129,772.5131,943.6734,273.17
Revenue (%)
EBITDA 12,81314,03116,07315,07317,38018,048.5319,364.7220,776.8922,292.0523,917.70
EBITDA (%)
EBIT 12,25713,41815,41714,30616,57617,236.2018,493.1519,841.7721,288.7422,841.22
EBIT (%)
Depreciation 556613656767804812.32871.56935.121,003.321,076.48
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 13,43811,70912,07420,04118,51218,160.7919,485.1720,906.1322,430.7124,066.47
Total Cash (%)
Account Receivables 2,5542,7904,5902,8823,7263,935.104,222.064,529.964,860.315,214.74
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 179183156174266229.76246.52264.50283.78304.48
Accounts Payable (%)
Capital Expenditure -707-718-756-736-705-875.15-938.97-1,007.45-1,080.92-1,159.74
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 178.04
Beta 0.901
Diluted Shares Outstanding 2,188
Cost of Debt
Tax Rate 23.36
After-tax Cost of Debt 1.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.224
Total Debt 20,977
Total Equity 389,551.52
Total Capital 410,528.52
Debt Weighting 5.11
Equity Weighting 94.89
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 18,35820,60922,97721,84624,10525,862.8627,748.9129,772.5131,943.6734,273.17
EBITDA 12,81314,03116,07315,07317,38018,048.5319,364.7220,776.8922,292.0523,917.70
EBIT 12,25713,41815,41714,30616,57617,236.2018,493.1519,841.7721,288.7422,841.22
Tax Rate 42.71%19.56%18.84%21.20%23.36%25.14%25.14%25.14%25.14%25.14%
EBIAT 7,021.5210,793.2912,512.5911,272.5912,704.1712,903.8413,844.8614,854.5015,937.7617,100.03
Depreciation 556613656767804812.32871.56935.121,003.321,076.48
Accounts Receivable --236-1,8001,708-844-209.10-286.97-307.89-330.35-354.44
Inventories ----------
Accounts Payable -4-271892-36.2416.7617.9819.2920.69
Capital Expenditure -707-718-756-736-705-875.15-938.97-1,007.45-1,080.92-1,159.74
UFCF 6,870.5210,456.2910,585.5913,029.5912,051.1712,595.6813,507.2414,492.2515,549.1016,683.02
WACC
PV UFCF 11,673.4811,601.7511,536.4311,471.4811,406.90
SUM PV UFCF 57,690.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.90
Free cash flow (t + 1) 17,016.68
Terminal Value 288,418.37
Present Value of Terminal Value 197,203.99

Intrinsic Value

Enterprise Value 254,894.03
Net Debt 4,490
Equity Value 250,404.03
Shares Outstanding 2,188
Equity Value Per Share 114.44