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BEN

Franklin Resources, Inc. – Investment Advice
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Analysis Results
Intrinsic Value $30.44
Latest Price $27.72
Relative Value 9% undervalued
Thoughts on this result? Let us know.
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -8.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -8.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 1.1 1.04
2025 1.01 0.894
2026 0.933 0.771
2027 0.858 0.666
2028 0.79 0.575
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 17.7 billion. This corresponds to a present value of 12.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.94 billion. Adding in the terminal value gives a total present value of 16.0 billion.

There are presently 527.0 million outstanding shares, so the intrinsic value per share is 30.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 16,520,800,000
Current Cash 4,402,400,000
Current Liabilities 11,290,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 828,300,000
Change in NCWC -656,100,000
EBIT 1,225,400,000
Tax Provision 312,300,000
Depreciation and Amortization 445,400,000
Capital Expenditure -148,800,000
Unlevered Free Cash Flow 595,579,720
Current Assets 14,825,200,000
Current Cash 4,782,500,000
Current Liabilities 8,558,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,484,400,000
Change in NCWC 381,100,000
EBIT 1,810,100,000
Tax Provision 396,200,000
Depreciation and Amortization 377,800,000
Capital Expenditure -90,300,000
Unlevered Free Cash Flow 2,064,011,888
Current Assets 12,591,500,000
Current Cash 4,647,200,000
Current Liabilities 6,841,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,103,300,000
Change in NCWC 910,900,000
EBIT 2,029,300,000
Tax Provision 349,600,000
Depreciation and Amortization 310,600,000
Capital Expenditure -79,300,000
Unlevered Free Cash Flow 2,881,244,178
Current Assets 8,455,600,000
Current Cash 3,957,500,000
Current Liabilities 4,305,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 192,400,000
Change in NCWC -1,499,200,000
EBIT 950,800,000
Tax Provision 230,800,000
Depreciation and Amortization 74,500,000
Capital Expenditure -103,700,000
Unlevered Free Cash Flow -793,185,656
Current Assets 9,722,900,000
Current Cash 5,957,600,000
Current Liabilities 2,073,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,691,600,000
Change in NCWC 214,100,000
EBIT 1,547,000,000
Tax Provision 442,300,000
Depreciation and Amortization 93,400,000
Capital Expenditure -233,700,000
Unlevered Free Cash Flow 1,205,556,584
Current Assets 10,513,600,000
Current Cash 6,910,600,000
Current Liabilities 2,125,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,477,500,000
Change in NCWC -2,323,800,000
EBIT 2,163,000,000
Tax Provision 1,472,500,000
Depreciation and Amortization 76,400,000
Capital Expenditure -106,500,000
Unlevered Free Cash Flow -1,628,701,327
Current Assets 13,719,100,000
Current Cash 8,749,700,000
Current Liabilities 1,168,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,801,300,000
Change in NCWC 756,500,000
EBIT 2,372,200,000
Tax Provision 759,400,000
Depreciation and Amortization 80,300,000
Capital Expenditure -74,900,000
Unlevered Free Cash Flow 2,427,400,113
Current Assets 13,207,600,000
Current Cash 8,483,300,000
Current Liabilities 1,679,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,044,800,000
Change in NCWC -77,900,000
EBIT 2,422,400,000
Tax Provision 742,100,000
Depreciation and Amortization 87,100,000
Capital Expenditure -97,600,000
Unlevered Free Cash Flow 1,614,877,254
Current Assets 13,415,900,000
Current Cash 8,368,100,000
Current Liabilities 1,925,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,122,700,000
Change in NCWC 257,900,000
EBIT 2,964,400,000
Tax Provision 923,700,000
Depreciation and Amortization 97,400,000
Capital Expenditure -68,800,000
Unlevered Free Cash Flow 2,346,720,803
Current Assets 12,631,800,000
Current Cash 7,596,000,000
Current Liabilities 2,171,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,864,800,000
Change in NCWC 225,800,000
EBIT 3,289,300,000
Tax Provision 997,900,000
Depreciation and Amortization 94,600,000
Capital Expenditure -53,100,000
Unlevered Free Cash Flow 2,593,908,637
Current Assets 11,802,200,000
Current Cash 6,323,100,000
Current Liabilities 2,840,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,639,000,000
Change in NCWC 365,100,000
EBIT 2,994,100,000
Tax Provision 855,900,000
Depreciation and Amortization 93,500,000
Capital Expenditure -62,200,000
Unlevered Free Cash Flow 2,543,790,758
Current Assets 11,376,400,000
Current Cash 6,051,400,000
Current Liabilities 3,351,000,000
Current Debt 299,900,000
Non-Cash Working Capital (NCWC) 2,273,900,000
Change in NCWC 1,284,528,000
EBIT 2,580,900,000
Tax Provision 762,700,000
Depreciation and Amortization 212,000,000
Capital Expenditure -78,400,000
Unlevered Free Cash Flow 3,264,037,174

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