Discounted Cash Flow (DCF) Analysis Unlevered

MSCI Inc (MSCI)

Financial Services

Operating Data

Year A/P	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Actual	2018 Actual	2019 Projected	2020 Projected	2021 Projected	2022 Projected	2023 Projected
Revenue	913.36	996.66	1,075.00	1,150.68	1,274.15	1,433.93	1,569.58	1,718.06	1,880.59	2,058.49	2,253.22
Revenue (%)
EBITDA	442.25	499.83	483.32	568.90	662.94	848.60	802.84	878.79	961.92	1,052.92	1,152.52
EBITDA (%)
EBIT	361.78	425.28	405.49	487.54	582.92	762.99	695.95	761.79	833.85	912.73	999.08
EBIT (%)
Depreciation	80.47	74.55	77.83	81.35	80.02	85.61	106.89	117.00	128.07	140.18	153.44
Depreciation (%)

Balance Sheet Data

Year A/P	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Actual	2018 Actual	2019 Projected	2020 Projected	2021 Projected	2022 Projected	2023 Projected
Total Cash	358.40	508.80	777.66	791.78	889.48	904.23	1,020.54	1,117.08	1,222.76	1,338.43	1,465.05
Total Cash (%)
Account Receivables	169.52	178.70	208.23	221.51	327.58	473.48	361.94	396.18	433.66	474.69	519.59
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	1.19	2.79	2.47	0.58	1.66	3.87	2.98	3.26	3.57	3.91	4.28
Accounts Payable (%)
Capital Expenditure	-43.48	-50.83	-49.13	-42.58	-48.80	-48.90	-64.67	-70.78	-77.48	-84.81	-92.83
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 222.73
Diluted Shares Outstanding	89.70
Cost of Debt
Tax Rate	19.37
After-tax Cost of Debt	-0.92
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.79
Total Debt	2,575.50
Total Equity	19,979.10
Total Capital	22,554.61
Debt Weighting	11.42
Equity Weighting	88.58
Wacc

Build Up Free Cash

Year A/P	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Actual	2018 Actual	2019 Projected	2020 Projected	2021 Projected	2022 Projected	2023 Projected
Revenue	913.36	996.66	1,075.00	1,150.68	1,274.15	1,433.93	1,569.58	1,718.06	1,880.59	2,058.49	2,253.22
EBITDA	442.25	499.83	483.32	568.90	662.94	848.60	802.84	878.79	961.92	1,052.92	1,152.52
EBIT	361.78	425.28	405.49	487.54	582.92	762.99	695.95	761.79	833.85	912.73	999.08
Tax Rate	33.66%	27.80%	34.83%	32.41%	34.90%	19.37%	30.49%	30.49%	30.49%	30.49%	30.49%
EBIAT	240.01	307.05	264.27	329.53	379.51	615.20	483.73	529.49	579.58	634.41	694.42
Depreciation	80.47	74.55	77.83	81.35	80.02	85.61	106.89	117.00	128.07	140.18	153.44
Accounts Receivable	-	-9.18	-29.53	-13.28	-106.08	-145.90	111.54	-34.24	-37.48	-41.02	-44.91
Inventories	-	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	1.60	-0.32	-1.90	1.08	2.22	-0.89	0.28	0.31	0.34	0.37
Capital Expenditure	-	7.35	-1.70	-6.55	6.22	0.10	15.77	6.12	6.70	7.33	8.02
UFCF	320.48	381.37	310.55	389.16	360.75	557.22	717.04	618.65	677.17	741.23	811.35
WACC
PV UFCF							646.56	503.02	496.48	490.04	483.67
SUM PV UFCF											3,006.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.90
Free cash flow (t + 1)	843.81
Terminal Value	12,229.11
Present Value of Terminal Value	7,290.16

Intrinsic Value

Enterprise Value	10,297.01
Net Debt	1,671.27
Equity Value	8,625.74
Shares Outstanding	89.70
Equity Value Per Share	96.16

Results Unlevered DCF

Wacc / Long-term Growth	-4 (%)	-3 (%)	-2 (%)	-1 (%)	0 (%)	1 (%)	2 (%)	3 (%)	4 (%)
12.90 (%)	58.84 Sell	63.03 Sell	67.99 Sell	73.95 Sell	81.25 Sell	90.39 Sell	102.19 Sell	117.99 Sell	140.24 Sell
12.40 (%)	56.24 Sell	60.04 Sell	64.51 Sell	69.83 Sell	76.29 Sell	84.29 Sell	94.45 Sell	107.78 Sell	126.05 Sell
11.90 (%)	53.85 Sell	57.31 Sell	61.35 Sell	66.13 Sell	71.88 Sell	78.92 Sell	87.73 Sell	99.11 Sell	114.34 Sell
11.40 (%)	51.66 Sell	54.81 Sell	58.48 Sell	62.79 Sell	67.92 Sell	74.15 Sell	81.86 Sell	91.66 Sell	104.51 Sell
10.90 (%)	49.63 Sell	52.52 Sell	55.85 Sell	59.75 Sell	64.36 Sell	69.90 Sell	76.69 Sell	85.19 Sell	96.16 Sell
10.40 (%)	47.75 Sell	50.40 Sell	53.45 Sell	56.98 Sell	61.14 Sell	66.09 Sell	72.10 Sell	79.54 Sell	88.98 Sell
9.90 (%)	46.02 Sell	48.45 Sell	51.24 Sell	54.45 Sell	58.21 Sell	62.66 Sell	68.01 Sell	74.55 Sell	82.76 Sell
9.40 (%)	44.40 Sell	46.65 Sell	49.20 Sell	52.14 Sell	55.55 Sell	59.56 Sell	64.34 Sell	70.13 Sell	77.31 Sell
8.90 (%)	42.90 Sell	44.97 Sell	47.32 Sell	50.01 Sell	53.11 Sell	56.74 Sell	61.03 Sell	66.19 Sell	72.51 Sell

Financial Modeling Prep is a new concept that informs you about stock markets information (news, currencies and stock prices). We always strive to give you the best and most updated information. We also gives you free financial modeling methodology through our academy. Most investment banking firms follow our guidelines to get discounted cash flow statement of companies to see if they are undervalued, overvalued or simply at par value. You can find all financial models and valuation techniques that is used in corporate finance to get companies intrinsic valuation. Most private equity firm use financial modeling for decision making when it comes to hold, buy or sell a particular stock.

You can support our API by donating via Paypal !