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	585,845	610,232	619,430	790,934	904,876	1,012,925.88	1,133,877.83	1,269,272.47	1,420,834.38	1,590,494.06
Revenue (%)
EBITDA	136,387	145,216	166,286	180,013	153,262	230,175.53	257,660.45	288,427.29	322,867.96	361,421.14
EBITDA (%)
EBIT	116,913	124,354	138,630	149,102.01	119,860	192,075.27	215,010.69	240,684.79	269,424.60	301,596.18
EBIT (%)
Depreciation	19,474	20,862	27,656	30,911	33,402	38,100.26	42,649.76	47,742.50	53,443.36	59,824.96
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	379,245	335,184	346,119	351,281	410,208	537,429.15	601,602.75	673,439.23	753,853.59	843,870.11
Total Cash (%)
Account Receivables	160,241	164,255	153,875	215,066	214,957	263,476.45	294,937.77	330,155.84	369,579.25	413,710.15
Account Receivables (%)
Inventories	3,951	1,865	1,064	1,334	1,188	2,941.04	3,292.23	3,685.35	4,125.41	4,618.02
Inventories (%)
Accounts Payable	88,304	78,129	78,870	99,034	89,054	127,570.88	142,803.93	159,855.93	178,944.09	200,311.53
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	585,845	610,232	619,430	790,934	904,876	1,012,925.88	1,133,877.83	1,269,272.47	1,420,834.38	1,590,494.06
EBITDA	136,387	145,216	166,286	180,013	153,262	230,175.53	257,660.45	288,427.29	322,867.96	361,421.14
EBIT	116,913	124,354	138,630	149,102.01	119,860	192,075.27	215,010.69	240,684.79	269,424.60	301,596.18
Tax Rate	21.99%	20.65%	22.34%	19.23%	23.13%	21.47%	21.47%	21.47%	21.47%	21.47%
EBIAT	91,199.54	98,679.70	107,653.24	120,435.78	92,133.19	150,839.28	168,850.77	189,012.98	211,582.74	236,847.51
Depreciation	19,474	20,862	27,656	30,911	33,402	38,100.26	42,649.76	47,742.50	53,443.36	59,824.96
Accounts Receivable	-	-4,014	10,380	-61,191	108.99	-48,519.44	-31,461.32	-35,218.07	-39,423.41	-44,130.90
Inventories	-	2,086	801	-270	145.99	-1,753.04	-351.19	-393.12	-440.06	-492.61
Accounts Payable	-	-10,175	741.01	20,164	-9,980.01	38,516.89	15,233.05	17,052	19,088.16	21,367.44
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	87,892.54	83,941.69	127,654.25	89,896.79	100,976.16	146,620.13	160,707.66	179,897.52	201,378.81	225,425.15
WACC
PV UFCF						139,797.99	146,100.34	155,936.27	166,434.39	177,639.27
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