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 544,871585,845610,232619,430790,934871,762.19960,850.481,059,0431,167,270.141,286,557.37
Revenue (%)
EBITDA 127,046140,363148,015170,245187,373213,940.10235,803.35259,900.89286,461.03315,735.43
EBITDA (%)
EBIT 105,922120,889127,153142,589156,462180,826.07199,305.29219,672.97242,122.08266,865.35
EBIT (%)
Depreciation 21,12419,47420,86227,65630,91133,114.0336,498.0640,227.9244,338.9448,870.09
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 297,183388,628335,184346,119351,281481,380.07530,573.91584,795.03644,557.19710,426.64
Total Cash (%)
Account Receivables 153,881150,858164,255153,875215,066231,787.31255,474.43281,582.22310,358.05342,074.57
Account Receivables (%)
Inventories 3,3703,9511,8651,0641,3343,380.623,726.104,106.884,526.584,989.17
Inventories (%)
Accounts Payable 24,40628,52727,05323,23299,03452,399.0557,753.8963,655.9570,161.1677,331.17
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 544,871585,845610,232619,430790,934871,762.19960,850.481,059,0431,167,270.141,286,557.37
EBITDA 127,046140,363148,015170,245187,373213,940.10235,803.35259,900.89286,461.03315,735.43
EBIT 105,922120,889127,153142,589156,462180,826.07199,305.29219,672.97242,122.08266,865.35
Tax Rate 21.85%21.99%20.65%22.34%19.23%21.21%21.21%21.21%21.21%21.21%
EBIAT 82,775.5394,301.07100,900.81110,727.61126,380.75142,468.16157,027.45173,074.61190,761.68210,256.26
Depreciation 21,12419,47420,86227,65630,91133,114.0336,498.0640,227.9244,338.9448,870.09
Accounts Receivable -3,023-13,39710,380-61,191-16,721.32-23,687.12-26,107.79-28,775.83-31,716.53
Inventories --5812,086801-270-2,046.63-345.48-380.78-419.70-462.59
Accounts Payable -4,121-1,474-3,82175,802-46,634.955,354.835,902.066,505.217,170
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 82,029.5397,557.0885,480.81126,166.61151,479.7679,734.99141,292.25155,731.37171,646.08189,187.17
WACC
PV UFCF 77,352.53132,974.85142,184.71152,032.44162,562.22
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