Discounted Cash Flow (DCF) Analysis Unlevered

Voltas Limited (VOLTAS.NS)

845.1 ₹

+8.45 (+1.01%)

All numbers are in Millions, Currency in USD

Stock DCF: 628.61 | 845.1 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	63,567.90	70,845.90	76,271.50	74,565.50	78,410.70	82,728.69	87,284.46	92,091.12	97,162.47	102,513.10
Revenue (%)
EBITDA	8,356.80	7,284	7,935	7,656	7,585.20	8,897.06	9,387.01	9,903.94	10,449.34	11,024.77
EBITDA (%)
EBIT	8,113.30	7,044.20	7,615.40	7,317.10	7,212.60	8,554.52	9,025.61	9,522.64	10,047.04	10,600.32
EBIT (%)
Depreciation	243.50	239.80	319.60	338.90	372.60	342.54	361.40	381.30	402.30	424.46
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	8,231	15,990.10	8,712.70	7,379.80	10,857.90	11,695.59	12,339.65	13,019.18	13,736.14	14,492.57
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	8,129.90	10,906.60	14,689.40	12,796	16,613.90	14,195.01	14,976.71	15,801.47	16,671.63	17,589.72
Inventories (%)
Accounts Payable	21,764.10	23,744.90	26,888.90	24,645.30	29,420.50	28,720.24	30,301.84	31,970.52	33,731.10	35,588.64
Accounts Payable (%)
Capital Expenditure	-346.10	-817.70	-905	-208.20	-481.60	-625.20	-659.63	-695.96	-734.28	-774.72
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 845.1
Beta	0.464
Diluted Shares Outstanding	330.98
Cost of Debt
Tax Rate	27.71
After-tax Cost of Debt	5.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.691
Total Debt	3,608.30
Total Equity	279,715.34
Total Capital	283,323.64
Debt Weighting	1.27
Equity Weighting	98.73
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	63,567.90	70,845.90	76,271.50	74,565.50	78,410.70	82,728.69	87,284.46	92,091.12	97,162.47	102,513.10
EBITDA	8,356.80	7,284	7,935	7,656	7,585.20	8,897.06	9,387.01	9,903.94	10,449.34	11,024.77
EBIT	8,113.30	7,044.20	7,615.40	7,317.10	7,212.60	8,554.52	9,025.61	9,522.64	10,047.04	10,600.32
Tax Rate	28.89%	25.02%	30.52%	25.95%	27.71%	27.62%	27.62%	27.62%	27.62%	27.62%
EBIAT	5,769.65	5,281.62	5,291.52	5,418	5,214.11	6,192	6,532.98	6,892.75	7,272.32	7,672.80
Depreciation	243.50	239.80	319.60	338.90	372.60	342.54	361.40	381.30	402.30	424.46
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-2,776.70	-3,782.80	1,893.40	-3,817.90	2,418.89	-781.70	-824.75	-870.17	-918.09
Accounts Payable	-	1,980.80	3,144	-2,243.60	4,775.20	-700.26	1,581.59	1,668.69	1,760.58	1,857.53
Capital Expenditure	-346.10	-817.70	-905	-208.20	-481.60	-625.20	-659.63	-695.96	-734.28	-774.72
UFCF	5,667.06	3,907.82	4,067.32	5,198.50	6,062.41	7,627.97	7,034.64	7,422.03	7,830.76	8,261.99
WACC
PV UFCF						7,217.99	6,298.78	6,288.46	6,278.16	6,267.88
SUM PV UFCF										32,351.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.68
Free cash flow (t + 1)	8,427.23
Terminal Value	229,000.71
Present Value of Terminal Value	173,729.19

Intrinsic Value

Enterprise Value	206,080.46
Net Debt	-1,980.70
Equity Value	208,061.16
Shares Outstanding	330.98
Equity Value Per Share	628.61