Discounted Cash Flow (DCF) Analysis Unlevered

Wipro Limited (WIT)

$4.858

+0.04 (+0.79%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,274.28 | 4.858 | undervalue

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 585,845610,232619,430790,934904,8761,012,925.881,133,877.831,269,272.471,420,834.381,590,494.06
Revenue (%)
EBITDA 136,387145,216166,286180,013153,262230,175.53257,660.45288,427.29322,867.96361,421.14
EBITDA (%)
EBIT 116,913124,354138,630149,102.01119,860192,075.27215,010.69240,684.79269,424.60301,596.18
EBIT (%)
Depreciation 19,47420,86227,65630,91133,40238,100.2642,649.7647,742.5053,443.3659,824.96
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 379,245335,184346,119351,281410,208537,429.15601,602.75673,439.23753,853.59843,870.11
Total Cash (%)
Account Receivables 160,241164,255153,875215,066214,957263,476.45294,937.77330,155.84369,579.25413,710.15
Account Receivables (%)
Inventories 3,9511,8651,0641,3341,1882,941.043,292.233,685.354,125.414,618.02
Inventories (%)
Accounts Payable 88,30478,12978,87099,03489,054127,570.88142,803.93159,855.93178,944.09200,311.53
Accounts Payable (%)
Capital Expenditure -22,781-23,497-19,577-20,153-14,834-30,563.82-34,213.40-38,298.77-42,871.97-47,991.25
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 4.858
Beta 0.650
Diluted Shares Outstanding 5,488.99
Cost of Debt
Tax Rate 23.13
After-tax Cost of Debt 4.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.821
Total Debt 174,666
Total Equity 26,665.52
Total Capital 201,331.52
Debt Weighting 86.76
Equity Weighting 13.24
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 585,845610,232619,430790,934904,8761,012,925.881,133,877.831,269,272.471,420,834.381,590,494.06
EBITDA 136,387145,216166,286180,013153,262230,175.53257,660.45288,427.29322,867.96361,421.14
EBIT 116,913124,354138,630149,102.01119,860192,075.27215,010.69240,684.79269,424.60301,596.18
Tax Rate 21.99%20.65%22.34%19.23%23.13%21.47%21.47%21.47%21.47%21.47%
EBIAT 91,199.5498,679.70107,653.24120,435.7892,133.19150,839.28168,850.77189,012.98211,582.74236,847.51
Depreciation 19,47420,86227,65630,91133,40238,100.2642,649.7647,742.5053,443.3659,824.96
Accounts Receivable --4,01410,380-61,191108.99-48,519.44-31,461.32-35,218.07-39,423.41-44,130.90
Inventories -2,086801-270145.99-1,753.04-351.19-393.12-440.06-492.61
Accounts Payable --10,175741.0120,164-9,980.0138,516.8915,233.0517,05219,088.1621,367.44
Capital Expenditure -22,781-23,497-19,577-20,153-14,834-30,563.82-34,213.40-38,298.77-42,871.97-47,991.25
UFCF 87,892.5483,941.69127,654.2589,896.79100,976.16146,620.13160,707.66179,897.52201,378.81225,425.15
WACC
PV UFCF 139,797.99146,100.34155,936.27166,434.39177,639.27
SUM PV UFCF 785,908.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.88
Free cash flow (t + 1) 229,933.66
Terminal Value 7,983,807.53
Present Value of Terminal Value 6,291,390.83

Intrinsic Value

Enterprise Value 7,077,299.09
Net Debt 82,786
Equity Value 6,994,513.09
Shares Outstanding 5,488.99
Equity Value Per Share 1,274.28