Discounted Cash Flow (DCF) Analysis Unlevered

Wipro Limited (WIT)

$5.49

+0.07 (+1.29%)

All numbers are in Millions, Currency in USD

Stock DCF: 2,816.86 | 5.49 | undervalue

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	544,871	585,845	610,232	619,430	790,934	871,762.19	960,850.48	1,059,043	1,167,270.14	1,286,557.37
Revenue (%)
EBITDA	127,046	140,363	148,015	170,245	187,373	213,940.10	235,803.35	259,900.89	286,461.03	315,735.43
EBITDA (%)
EBIT	105,922	120,889	127,153	142,589	156,462	180,826.07	199,305.29	219,672.97	242,122.08	266,865.35
EBIT (%)
Depreciation	21,124	19,474	20,862	27,656	30,911	33,114.03	36,498.06	40,227.92	44,338.94	48,870.09
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	297,183	388,628	335,184	346,119	351,281	481,380.07	530,573.91	584,795.03	644,557.19	710,426.64
Total Cash (%)
Account Receivables	153,881	150,858	164,255	153,875	215,066	231,787.31	255,474.43	281,582.22	310,358.05	342,074.57
Account Receivables (%)
Inventories	3,370	3,951	1,865	1,064	1,334	3,380.62	3,726.10	4,106.88	4,526.58	4,989.17
Inventories (%)
Accounts Payable	24,406	28,527	27,053	23,232	99,034	52,399.05	57,753.89	63,655.95	70,161.16	77,331.17
Accounts Payable (%)
Capital Expenditure	-21,870	-22,781	-23,497	-19,577	-20,153	-30,444.30	-33,555.50	-36,984.65	-40,764.24	-44,930.07
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 5.49
Beta	0.749
Diluted Shares Outstanding	5,661.66
Cost of Debt
Tax Rate	19.23
After-tax Cost of Debt	2.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.659
Total Debt	175,929
Total Equity	31,082.50
Total Capital	207,011.50
Debt Weighting	84.99
Equity Weighting	15.01
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	544,871	585,845	610,232	619,430	790,934	871,762.19	960,850.48	1,059,043	1,167,270.14	1,286,557.37
EBITDA	127,046	140,363	148,015	170,245	187,373	213,940.10	235,803.35	259,900.89	286,461.03	315,735.43
EBIT	105,922	120,889	127,153	142,589	156,462	180,826.07	199,305.29	219,672.97	242,122.08	266,865.35
Tax Rate	21.85%	21.99%	20.65%	22.34%	19.23%	21.21%	21.21%	21.21%	21.21%	21.21%
EBIAT	82,775.53	94,301.07	100,900.81	110,727.61	126,380.75	142,468.16	157,027.45	173,074.61	190,761.68	210,256.26
Depreciation	21,124	19,474	20,862	27,656	30,911	33,114.03	36,498.06	40,227.92	44,338.94	48,870.09
Accounts Receivable	-	3,023	-13,397	10,380	-61,191	-16,721.32	-23,687.12	-26,107.79	-28,775.83	-31,716.53
Inventories	-	-581	2,086	801	-270	-2,046.63	-345.48	-380.78	-419.70	-462.59
Accounts Payable	-	4,121	-1,474	-3,821	75,802	-46,634.95	5,354.83	5,902.06	6,505.21	7,170
Capital Expenditure	-21,870	-22,781	-23,497	-19,577	-20,153	-30,444.30	-33,555.50	-36,984.65	-40,764.24	-44,930.07
UFCF	82,029.53	97,557.08	85,480.81	126,166.61	151,479.76	79,734.99	141,292.25	155,731.37	171,646.08	189,187.17
WACC
PV UFCF						77,352.53	132,974.85	142,184.71	152,032.44	162,562.22
SUM PV UFCF										667,106.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.08
Free cash flow (t + 1)	192,970.91
Terminal Value	17,867,676.97
Present Value of Terminal Value	15,353,098.73

Intrinsic Value

Enterprise Value	16,020,205.48
Net Debt	72,093
Equity Value	15,948,112.48
Shares Outstanding	5,661.66
Equity Value Per Share	2,816.86