DCF Tool

IGT

International Game Technology PLC – Casinos (except Casino Hotels)
IGT is the global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, its solutions deliver unrivaled gaming experiences that engage players and drive growth. The Company has a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and creates value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 11,000 employees.
Analysis Results
Intrinsic Value $19.76
Latest Price $24.45
Relative Value 24% overvalued
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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 -14.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -14.7%, 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 0.397 0.371
2023 0.339 0.295
2024 0.289 0.235
2025 0.247 0.188
2026 0.211 0.149
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4.21 billion. This corresponds to a present value of 2.79 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1.24 billion. Adding in the terminal value gives a total present value of 4.02 billion.

There are presently 204.0 million outstanding shares, so the intrinsic value per share is 19.76.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,489,000,000
Current Cash 591,000,000
Current Liabilities 1,914,000,000
Current Debt 52,000,000
Non-Cash Working Capital (NCWC) 36,000,000
Change in NCWC -275,181,000
EBIT 909,000,000
Tax Provision 274,000,000
Depreciation and Amortization 526,000,000
Capital Expenditure -238,000,000
Unlevered Free Cash Flow 451,883,150
Current Assets 3,440,085,000
Current Cash 907,015,000
Current Liabilities 2,615,041,000
Current Debt 393,152,000
Non-Cash Working Capital (NCWC) 311,181,000
Change in NCWC 343,081,000
EBIT 233,580,000
Tax Provision 27,698,000
Depreciation and Amortization 566,194,000
Capital Expenditure -254,689,000
Unlevered Free Cash Flow 888,166,000
Current Assets 2,634,037,000
Current Cash 662,934,000
Current Liabilities 2,468,351,000
Current Debt 465,348,000
Non-Cash Working Capital (NCWC) -31,900,000
Change in NCWC -100,625,000
EBIT 739,870,000
Tax Provision 173,109,000
Depreciation and Amortization 713,457,000
Capital Expenditure -442,084,000
Unlevered Free Cash Flow 460,853,259
Current Assets 2,286,696,000
Current Cash 250,669,000
Current Liabilities 2,002,124,000
Current Debt 34,822,000
Non-Cash Working Capital (NCWC) 68,725,000
Change in NCWC 1,139,189,000
EBIT 782,230,000
Tax Provision 189,401,000
Depreciation and Amortization 705,460,000
Capital Expenditure -533,052,000
Unlevered Free Cash Flow 1,606,551,490
Current Assets 3,064,517,000
Current Cash 1,057,418,000
Current Liabilities 3,676,677,000
Current Debt 599,114,000
Non-Cash Working Capital (NCWC) -1,070,464,000
Change in NCWC -724,222,000
EBIT 677,264,000
Tax Provision -29,414,000
Depreciation and Amortization 802,440,000
Capital Expenditure -698,010,000
Unlevered Free Cash Flow 57,472,000
Current Assets 2,289,566,000
Current Cash 294,094,000
Current Liabilities 2,341,791,000
Current Debt 77,000
Non-Cash Working Capital (NCWC) -346,242,000
Change in NCWC -193,666,000
EBIT 728,704,000
Tax Provision 59,206,000
Depreciation and Amortization 882,469,000
Capital Expenditure -557,238,000
Unlevered Free Cash Flow 726,867,902
Current Assets 2,485,374,000
Current Cash 627,484,000
Current Liabilities 2,010,626,000
Current Debt 160,000
Non-Cash Working Capital (NCWC) -152,576,000
Change in NCWC 435,911,814
EBIT 678,952,000
Tax Provision 38,896,000
Depreciation and Amortization 779,828,000
Capital Expenditure -402,634,000
Unlevered Free Cash Flow 1,492,057,814

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