DCF Tool

INFO

IHS Markit Ltd – All Other Business Support Services
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world's leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Analysis Results
Intrinsic Value $847.77
Latest Price $108.61
Relative Value 87% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 40.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 40.9%, 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 3.25 3.13
2023 4.58 4.25
2024 6.46 5.77
2025 9.1 7.82
2026 12.8 10.6
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 385 billion. This corresponds to a present value of 307 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 31.6 billion. Adding in the terminal value gives a total present value of 338 billion.

There are presently 399.0 million outstanding shares, so the intrinsic value per share is 847.77.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,669,800,000
Current Cash 586,200,000
Current Liabilities 5,424,600,000
Current Debt 1,494,600,000
Non-Cash Working Capital (NCWC) -846,400,000
Change in NCWC -243,400,000
EBIT 2,364,200,000
Tax Provision 270,600,000
Depreciation and Amortization 1,173,000,000
Capital Expenditure -588,600,000
Unlevered Free Cash Flow 2,466,717,736
Current Assets 1,233,300,000
Current Cash 125,600,000
Current Liabilities 1,978,800,000
Current Debt 268,100,000
Non-Cash Working Capital (NCWC) -603,000,000
Change in NCWC -81,200,000
EBIT 977,600,000
Tax Provision 13,300,000
Depreciation and Amortization 591,600,000
Capital Expenditure -274,800,000
Unlevered Free Cash Flow 1,198,470,103
Current Assets 1,307,800,000
Current Cash 111,500,000
Current Liabilities 1,969,200,000
Current Debt 251,100,000
Non-Cash Working Capital (NCWC) -521,800,000
Change in NCWC 29,200,000
EBIT 985,700,000
Tax Provision 242,600,000
Depreciation and Amortization 573,100,000
Capital Expenditure -278,100,000
Unlevered Free Cash Flow 987,621,266
Current Assets 1,099,400,000
Current Cash 120,000,000
Current Liabilities 2,320,300,000
Current Debt 789,900,000
Non-Cash Working Capital (NCWC) -551,000,000
Change in NCWC -102,100,000
EBIT 784,600,000
Tax Provision -115,400,000
Depreciation and Amortization 541,200,000
Capital Expenditure -222,700,000
Unlevered Free Cash Flow 1,001,000,000
Current Assets 1,015,000,000
Current Cash 133,800,000
Current Liabilities 1,906,100,000
Current Debt 576,000,000
Non-Cash Working Capital (NCWC) -448,900,000
Change in NCWC 64,300,000
EBIT 650,900,000
Tax Provision -49,900,000
Depreciation and Amortization 492,500,000
Capital Expenditure -260,200,000
Unlevered Free Cash Flow 947,500,000
Current Assets 933,500,000
Current Cash 138,900,000
Current Liabilities 1,412,400,000
Current Debt 104,600,000
Non-Cash Working Capital (NCWC) -513,200,000
Change in NCWC -247,800,000
EBIT 439,800,000
Tax Provision -5,100,000
Depreciation and Amortization 335,700,000
Capital Expenditure -147,600,000
Unlevered Free Cash Flow 380,100,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.