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Free Cash Flow Estimate (In INR CRS)

The document presents a discounted cash flow valuation of a company. It estimates the company's free cash flows over the next 10 years, applying an 18% growth rate for the first 5 years and 15% for the next 5, with a 6% terminal growth rate. Using a discount rate of 8% and the company's current debt and cash levels, it calculates an intrinsic value range between INR 10,942.3 to 13,373.9 per share, significantly above the current market price of INR 3015.5.

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227 views2 pages

Free Cash Flow Estimate (In INR CRS)

The document presents a discounted cash flow valuation of a company. It estimates the company's free cash flows over the next 10 years, applying an 18% growth rate for the first 5 years and 15% for the next 5, with a 6% terminal growth rate. Using a discount rate of 8% and the company's current debt and cash levels, it calculates an intrinsic value range between INR 10,942.3 to 13,373.9 per share, significantly above the current market price of INR 3015.5.

Uploaded by

SaiVamsi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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The Discounted Cash Flow (DCF) Model

Free Cash Flow Estimate (In INR Crs)


2015 2016 2017
Net cash from Operating Activities 16,319.89 17,986.00 23,132.00
Capital Expenditures 1,726.5 16.8 (12.0)
Free Cash Flow (FCF) 14,593.4 17,969.2 23,144.0
3 Year Average Free Cash flow 18,568.9

Inputs Cash flow & Present Value Table


Number of years considered 10 Sl No Year
FCF Growth rate for first 5 years 18% 1 2017-18
FCF Growth rate for last 5 years 15% 2 2018-19
Terminal Growth Rate 6.00% 3 2019-20
Discount Rate 8% 4 2020-21
5 2021-22
Intrinsic Value Calculation (INR Crs, unless indicated) 6 2022-23
Total PV of cash flow 2,394,868.21 7 2023-24
Total Debt 1,035.00 8 2024-25
Cash & Cash Balance 1,316.00 9 2025-26
Net Debt (281.00) 10 2026-27
Share Capital 197.00
Face Value (INR) 1.00 Terminal Year
Number of Shares 1,970,000,000 Terminal Value
Share Price (INR) 12,158.12 PV of Terminal Value

Intrinsic Value Band


Model Error leeway 10% Current Market Price as on 11/04/201
Lower Intrinsic value band 10,942.3
Upper Intrinsic value band 13,373.9
Present Value Table
Cash flow PV of Cash flow
21,911.27 20,288.21
25,855.29 22,166.75
30,509.25 24,219.22
36,000.91 26,461.75
42,481.08 28,911.91
48,853.24 30,785.83
56,181.22 32,781.20
64,608.41 34,905.91
74,299.67 37,168.33
85,444.62 39,577.39

2026-27
4,528,564.77
2,097,601.71

ket Price as on 11/04/2018 - 0 3015.5

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