DCF Tool

BLK

Blackrock Inc. – Securities and Commodity Exchanges
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of September 30, 2020, the firm managed approximately $7.81 trillion in assets on behalf of investors worldwide.
Analysis Results
Intrinsic Value $752.39
Latest Price $652.44
Relative Value 13% undervalued
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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 9.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.0%, 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)
2022 7.4 6.75
2023 8.06 6.71
2024 8.79 6.67
2025 9.58 6.63
2026 10.4 6.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 140 billion. This corresponds to a present value of 80.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 33.4 billion. Adding in the terminal value gives a total present value of 114 billion.

There are presently 152.0 million outstanding shares, so the intrinsic value per share is 752.39.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 111,987,000,000
Current Cash 9,072,000,000
Current Liabilities 97,655,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,260,000,000
Change in NCWC -741,000,000
EBIT 8,378,000,000
Tax Provision 1,968,000,000
Depreciation and Amortization 415,000,000
Capital Expenditure -341,000,000
Unlevered Free Cash Flow 5,693,637,464
Current Assets 139,207,000,000
Current Cash 8,509,000,000
Current Liabilities 124,697,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,001,000,000
Change in NCWC 1,369,000,000
EBIT 6,729,000,000
Tax Provision 1,238,000,000
Depreciation and Amortization 358,000,000
Capital Expenditure -194,000,000
Unlevered Free Cash Flow 6,985,099,019
Current Assets 130,864,000,000
Current Cash 4,698,000,000
Current Liabilities 121,534,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,632,000,000
Change in NCWC 593,000,000
EBIT 5,990,000,000
Tax Provision 1,261,000,000
Depreciation and Amortization 405,000,000
Capital Expenditure -254,000,000
Unlevered Free Cash Flow 5,428,765,854
Current Assets 124,561,000,000
Current Cash 6,302,000,000
Current Liabilities 114,220,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,039,000,000
Change in NCWC 2,221,000,000
EBIT 5,622,000,000
Tax Provision 1,076,000,000
Depreciation and Amortization 220,000,000
Capital Expenditure -204,000,000
Unlevered Free Cash Flow 6,734,181,851
Current Assets 186,522,000,000
Current Cash 6,894,000,000
Current Liabilities 177,810,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,818,000,000
Change in NCWC 701,000,000
EBIT 5,482,000,000
Tax Provision 270,000,000
Depreciation and Amortization 240,000,000
Capital Expenditure -155,000,000
Unlevered Free Cash Flow 5,987,511,085
Current Assets 187,279,000,000
Current Cash 6,091,000,000
Current Liabilities 180,071,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,117,000,000
Change in NCWC -147,000,000
EBIT 4,741,000,000
Tax Provision 1,290,000,000
Depreciation and Amortization 229,000,000
Capital Expenditure -119,000,000
Unlevered Free Cash Flow 3,332,724,215
Current Assets 192,750,000,000
Current Cash 6,083,000,000
Current Liabilities 185,403,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,264,000,000
Change in NCWC 852,000,000
EBIT 4,806,000,000
Tax Provision 1,250,000,000
Depreciation and Amortization 247,000,000
Capital Expenditure -221,000,000
Unlevered Free Cash Flow 4,378,589,308
Current Assets 207,610,000,000
Current Cash 5,723,000,000
Current Liabilities 201,475,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 412,000,000
Change in NCWC -501,000,000
EBIT 4,627,000,000
Tax Provision 1,131,000,000
Depreciation and Amortization 278,000,000
Capital Expenditure -66,000,000
Unlevered Free Cash Flow 3,147,297,610
Current Assets 187,478,000,000
Current Cash 4,390,000,000
Current Liabilities 182,175,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 913,000,000
Change in NCWC -9,000,000
EBIT 4,308,000,000
Tax Provision 1,022,000,000
Depreciation and Amortization 291,000,000
Capital Expenditure -94,000,000
Unlevered Free Cash Flow 3,387,825,824
Current Assets 168,438,000,000
Current Cash 4,606,000,000
Current Liabilities 163,010,000,000
Current Debt 100,000,000
Non-Cash Working Capital (NCWC) 922,000,000
Change in NCWC -136,000,000
EBIT 3,685,000,000
Tax Provision 1,030,000,000
Depreciation and Amortization 295,000,000
Capital Expenditure -150,000,000
Unlevered Free Cash Flow 2,600,181,556

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