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Discounted Cash Flow (DCF) Analysis Unlevered


Worldpay Inc. Class A

Worldpay Inc. Class A (WP)

Industrials

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 2,108.082,577.123,159.813,578.804,026.153,925.104,459.705,067.115,757.256,541.387,432.32
Revenue (%)
EBITDA 443.75512.07618.69734.731,220.331,385.171,119.831,272.351,445.641,642.541,866.26
EBITDA (%)
EBIT 258.24271.37341.89464.53901.86290.06571.73649.60738.08838.61952.82
EBIT (%)
Depreciation 185.51240.70276.80270.20318.471,095.10548.10622.75707.57803.94913.43
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 171.39411.57197.17139.22126.42196.65305.49347.10394.37448.08509.11
Total Cash (%)
Account Receivables 477.27613.87684.10941.94986.411,694.861,243.811,413.221,605.701,824.392,072.87
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 235.68301.78369.70475.62631.701,188.52737.63838.10952.251,081.941,229.31
Accounts Payable (%)
Capital Expenditure -61.56-103.08-84.68-118.10-110.72-304.98-182.85-207.75-236.05-268.20-304.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 135.09
Diluted Shares Outstanding 295.21
Cost of Debt
Tax Rate 185.91
After-tax Cost of Debt -9.25
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.60
Total Debt 7,656.40
Total Equity 39,880.50
Total Capital 47,536.90
Debt Weighting 16.11
Equity Weighting 83.89
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 2,108.082,577.123,159.813,578.804,026.153,925.104,459.705,067.115,757.256,541.387,432.32
EBITDA 443.75512.07618.69734.731,220.331,385.171,119.831,272.351,445.641,642.541,866.26
EBIT 258.24271.37341.89464.53901.86290.06571.73649.60738.08838.61952.82
Tax Rate 38.54%34.56%37.34%39.94%82.91%185.91%69.87%69.87%69.87%69.87%69.87%
EBIAT 158.71177.58214.22278.98154.16-249.18172.28195.74222.40252.70287.11
Depreciation 185.51240.70276.80270.20318.471,095.10548.10622.75707.57803.94913.43
Accounts Receivable --136.60-70.23-257.84-44.47-708.45451.05-169.41-192.48-218.70-248.48
Inventories -----------
Accounts Payable -66.1067.92105.92156.08556.82-450.89100.47114.15129.70147.36
Capital Expenditure -41.53-18.4033.42-7.38194.26-122.1324.9028.3032.1536.53
UFCF 344.22389.31470.30430.68576.86888.55598.41774.45879.93999.781,135.95
WACC
PV UFCF 557.38671.91711.09752.55796.43
SUM PV UFCF 4,626.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.36
Free cash flow (t + 1) 1,181.39
Terminal Value 35,160.43
Present Value of Terminal Value 24,651.40

Intrinsic Value

Enterprise Value 29,277.45
Net Debt 7,459.75
Equity Value 21,817.70
Shares Outstanding 295.21
Equity Value Per Share 73.90

Results Unlevered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
9.36 (%) 20.80 Sell 24.79 Sell 29.86 Sell 36.54 Sell 45.70 Sell 59.06 Sell 80.37 Sell 119.75 Sell 217.04 Buy
8.86 (%) 18.58 Sell 22.09 Sell 26.49 Sell 32.17 Sell 39.79 Sell 50.55 Sell 66.89 Sell 94.64 Sell 152.24 Buy
8.36 (%) 16.60 Sell 19.70 Sell 23.54 Sell 28.43 Sell 34.85 Sell 43.67 Sell 56.54 Sell 77.06 Sell 114.98 Sell
7.86 (%) 14.81 Sell 17.57 Sell 20.95 Sell 25.18 Sell 30.66 Sell 38.00 Sell 48.36 Sell 64.09 Sell 90.82 Sell
7.36 (%) 13.20 Sell 15.66 Sell 18.65 Sell 22.35 Sell 27.06 Sell 33.24 Sell 41.74 Sell 54.13 Sell 73.90 Sell
6.86 (%) 11.74 Sell 13.94 Sell 16.60 Sell 19.85 Sell 23.94 Sell 29.21 Sell 36.28 Sell 46.26 Sell 61.42 Sell
6.36 (%) 10.41 Sell 12.39 Sell 14.76 Sell 17.64 Sell 21.21 Sell 25.75 Sell 31.71 Sell 39.89 Sell 51.84 Sell
5.86 (%) 9.19 Sell 10.99 Sell 13.11 Sell 15.67 Sell 18.81 Sell 22.74 Sell 27.83 Sell 34.64 Sell 44.26 Sell
5.36 (%) 8.08 Sell 9.71 Sell 11.62 Sell 13.91 Sell 16.68 Sell 20.12 Sell 24.49 Sell 30.24 Sell 38.13 Sell