DCF Tool

DEO

Diageo plc is a British multinational alcoholic beverage company, with its headquarters in London, England. It operates from 132 sites around the world. It is a major distributor of Scotch whisky and other spirits.
Analysis Results
Intrinsic Value $245.76
Latest Price $136.99
Relative Value 44% 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 4.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.3%, 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 4.86 4.6
2025 5.07 4.54
2026 5.29 4.48
2027 5.51 4.42
2028 5.75 4.36
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 159 billion. This corresponds to a present value of 114 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 22.4 billion. Adding in the terminal value gives a total present value of 137 billion.

There are presently 557.0 million outstanding shares, so the intrinsic value per share is 245.76.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 15,654,472,868
Current Cash 1,816,822,845
Current Liabilities 9,613,126,576
Current Debt 2,147,613,384
Non-Cash Working Capital (NCWC) 6,372,136,831
Change in NCWC 1,848,452,084
EBIT 6,315,321,662
Tax Provision 1,224,682,529
Depreciation and Amortization 1,345,888,223
Capital Expenditure -1,489,819,984
Unlevered Free Cash Flow 6,726,374,499
Current Assets 15,690,356,265
Current Cash 2,771,954,852
Current Liabilities 10,241,069,088
Current Debt 1,846,352,422
Non-Cash Working Capital (NCWC) 4,523,684,746
Change in NCWC -207,335,427
EBIT 5,854,465,698
Tax Provision 1,272,551,702
Depreciation and Amortization 1,004,454,537
Capital Expenditure -1,330,780,951
Unlevered Free Cash Flow 3,920,909,962
Current Assets 15,850,856,527
Current Cash 3,807,252,476
Current Liabilities 9,891,377,660
Current Debt 2,578,793,783
Non-Cash Working Capital (NCWC) 4,731,020,174
Change in NCWC 244,552,772
EBIT 5,629,858,609
Tax Provision 1,256,157,874
Depreciation and Amortization 619,076,703
Capital Expenditure -866,984,376
Unlevered Free Cash Flow 4,248,661,895
Current Assets 14,111,397,742
Current Cash 4,087,888,998
Current Liabilities 7,991,250,957
Current Debt 2,454,209,615
Non-Cash Working Capital (NCWC) 4,486,467,402
Change in NCWC 173,966,608
EBIT 2,975,806,044
Tax Provision 724,576,172
Depreciation and Amortization 2,262,301,495
Capital Expenditure -861,126,180
Unlevered Free Cash Flow 3,693,018,569
Current Assets 11,899,049,142
Current Cash 1,183,176,549
Current Liabilities 8,890,327,658
Current Debt 2,486,955,859
Non-Cash Working Capital (NCWC) 4,312,500,793
Change in NCWC -25,765,088
EBIT 5,527,414,911
Tax Provision 1,140,013,456
Depreciation and Amortization 474,794,023
Capital Expenditure -851,836,335
Unlevered Free Cash Flow 3,952,560,619
Current Assets 11,477,585,626
Current Cash 1,154,229,644
Current Liabilities 8,399,199,699
Current Debt 2,414,109,599
Non-Cash Working Capital (NCWC) 4,338,265,882
Change in NCWC 96,622,315
EBIT 5,282,515,534
Tax Provision 787,094,814
Depreciation and Amortization 651,070,039
Capital Expenditure -771,247,267
Unlevered Free Cash Flow 4,417,147,985
Current Assets 11,257,269,982
Current Cash 1,549,631,131
Current Liabilities 8,665,443,606
Current Debt 3,199,448,322
Non-Cash Working Capital (NCWC) 4,241,643,567
Change in NCWC -592,731,950
EBIT 5,032,723,103
Tax Provision 952,418,126
Depreciation and Amortization 469,703,474
Capital Expenditure -673,978,947
Unlevered Free Cash Flow 3,200,606,573
Current Assets 11,775,974,706
Current Cash 1,448,716,273
Current Liabilities 8,230,677,305
Current Debt 2,737,794,390
Non-Cash Working Capital (NCWC) 4,834,375,517
Change in NCWC -1,188,603,192
EBIT 4,073,433,636
Tax Provision 659,837,715
Depreciation and Amortization 629,240,401
Capital Expenditure -673,140,894
Unlevered Free Cash Flow 2,133,993,952
Current Assets 12,064,833,300
Current Cash 742,451,280
Current Liabilities 8,321,117,100
Current Debt 3,021,713,790
Non-Cash Working Capital (NCWC) 6,022,978,710
Change in NCWC -58,279,850
EBIT 4,674,926,280
Tax Provision 733,013,340
Depreciation and Amortization 692,115,600
Capital Expenditure -1,003,567,620
Unlevered Free Cash Flow 3,562,434,216
Current Assets 12,715,823,120
Current Cash 1,058,942,560
Current Liabilities 8,258,730,480
Current Debt 2,683,108,480
Non-Cash Working Capital (NCWC) 6,081,258,560
Change in NCWC 1,275,181,760
EBIT 5,037,638,320
Tax Provision 761,008,560
Depreciation and Amortization 1,070,859,920
Capital Expenditure -1,092,992,160
Unlevered Free Cash Flow 5,460,062,856

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