DCF Tool

KKR

founded in 1976 and led by henry kravis and george roberts, kkr is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. kkr aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. kkr invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. references to kkr's investments may include the activities of its sponsored funds. for additional information about kkr & co. l.p. (nyse:kkr), please visit kkr's website at www.kkr.com. twitter: @kkr_co
Analysis Results
Intrinsic Value $141.94
Latest Price $97.29
Relative Value 31% 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 -0.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -0.8%, 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 7.78 7.23
2025 7.72 6.68
2026 7.66 6.17
2027 7.6 5.7
2028 7.54 5.26
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 91.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 31.0 billion. Adding in the terminal value gives a total present value of 122 billion.

There are presently 860.0 million outstanding shares, so the intrinsic value per share is 141.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 289,495,995,000
Current Cash 0
Current Liabilities 255,918,601,000
Current Debt 0
Non-Cash Working Capital (NCWC) 33,577,394,000
Change in NCWC 1,091,809,000
EBIT 6,554,609,000
Tax Provision 1,197,523,000
Depreciation and Amortization 0
Capital Expenditure -108,393,000
Unlevered Free Cash Flow 6,340,502,000
Current Assets 253,278,862,000
Current Cash 0
Current Liabilities 220,793,277,000
Current Debt 0
Non-Cash Working Capital (NCWC) 32,485,585,000
Change in NCWC -5,781,908,000
EBIT -1,059,200,000
Tax Provision -35,672,000
Depreciation and Amortization 0
Capital Expenditure -85,056,000
Unlevered Free Cash Flow -6,926,164,000
Current Assets 242,662,015,000
Current Cash 0
Current Liabilities 204,394,522,000
Current Debt 0
Non-Cash Working Capital (NCWC) 38,267,493,000
Change in NCWC 9,035,331,000
EBIT 13,648,449,000
Tax Provision 1,353,270,000
Depreciation and Amortization 0
Capital Expenditure -102,049,000
Unlevered Free Cash Flow 21,228,461,000
Current Assets 67,383,433,000
Current Cash 0
Current Liabilities 38,151,271,000
Current Debt 0
Non-Cash Working Capital (NCWC) 29,232,162,000
Change in NCWC 9,857,841,000
EBIT 5,726,695,000
Tax Provision 609,097,000
Depreciation and Amortization 0
Capital Expenditure -142,258,000
Unlevered Free Cash Flow 14,833,181,000
Current Assets 49,587,258,000
Current Cash 0
Current Liabilities 30,212,937,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,374,321,000
Change in NCWC 2,756,555,000
EBIT 5,168,290,000
Tax Provision 528,750,000
Depreciation and Amortization 0
Capital Expenditure -194,569,000
Unlevered Free Cash Flow 7,201,526,000
Current Assets 41,733,901,000
Current Cash 0
Current Liabilities 25,116,135,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,617,766,000
Change in NCWC 4,174,887,000
EBIT 2,256,848,000
Tax Provision -194,098,000
Depreciation and Amortization 0
Capital Expenditure -102,664,000
Unlevered Free Cash Flow 6,329,071,000

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.