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Discounted Cash Flow (DCF) Analysis Unlevered


Visa Inc.

Visa Inc. (V)

Financial Services

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 11,778.0012,702.5713,880.1015,082.1218,357.9520,608.6422,976.5725,706.1928,760.0832,176.7835,999.38
Revenue (%)
EBITDA 7,654.528,166.489,492.608,940.6812,813.8514,030.3616,072.1117,068.9119,096.7021,365.3823,903.59
EBITDA (%)
EBIT 7,257.607,732.068,998.478,438.4512,257.6113,418.2915,414.9816,241.1718,170.6220,329.2922,744.41
EBIT (%)
Depreciation 396.92434.43494.13502.23556.25612.08657.13827.74926.071,036.091,159.18
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 4,303.685,448.137,087.189,964.7614,469.7413,199.8313,278.1614,588.2616,321.3518,260.3220,429.65
Total Cash (%)
Account Receivables 1,560.591,608.151,254.762,508.162,553.592,790.414,590.723,634.864,066.684,549.805,090.31
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 1,408.651,478.58906.372,286.452,182.762,351.454,144.973,182.433,560.503,983.494,456.72
Accounts Payable (%)
Capital Expenditure -471.12-552.56-403.91-523.35-695.77-704.82-755.93-925.42-1,035.36-1,158.36-1,295.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 185.19
Diluted Shares Outstanding 1,999.00
Cost of Debt
Tax Rate 18.84
After-tax Cost of Debt -0.89
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.40
Total Debt 16,729.00
Total Equity 370,194.81
Total Capital 386,923.81
Debt Weighting 4.32
Equity Weighting 95.68
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 11,778.0012,702.5713,880.1015,082.1218,357.9520,608.6422,976.5725,706.1928,760.0832,176.7835,999.38
EBITDA 7,654.528,166.489,492.608,940.6812,813.8514,030.3616,072.1117,068.9119,096.7021,365.3823,903.59
EBIT 7,257.607,732.068,998.478,438.4512,257.6113,418.2915,414.9816,241.1718,170.6220,329.2922,744.41
Tax Rate 31.38%29.60%29.65%25.22%42.71%19.56%18.84%28.14%28.14%28.14%28.14%
EBIAT 4,980.415,443.676,330.446,309.887,021.8710,793.5212,510.9511,671.3313,057.8914,609.1716,344.73
Depreciation 396.92434.43494.13502.23556.25612.08657.13827.74926.071,036.091,159.18
Accounts Receivable --47.56353.38-1,253.40-45.44-236.82-1,800.31955.86-431.82-483.12-540.52
Inventories -----------
Accounts Payable -69.93-572.211,380.08-103.69168.691,793.53-962.55378.07422.99473.24
Capital Expenditure -81.44-148.65119.44172.429.0551.11169.49109.94123.00137.61
UFCF 5,377.335,981.916,457.107,058.237,601.4111,346.5113,212.4112,661.8814,040.1515,708.1317,574.25
WACC
PV UFCF 10,439.6810,511.2610,678.2910,847.97
SUM PV UFCF 61,030.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.13
Free cash flow (t + 1) 18,277.22
Terminal Value 298,160.20
Present Value of Terminal Value 184,043.92

Intrinsic Value

Enterprise Value 245,074.85
Net Debt 3,450.84
Equity Value 241,624.01
Shares Outstanding 1,999.00
Equity Value Per Share 120.87