DCF Tool

KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR's investments may include the activities of its sponsored funds.
Analysis Results
Intrinsic Value $1,434.75
Latest Price $43.00
Relative Value 97% 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 44.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 1.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 44.3%, 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)
2022 26.6 24.4
2023 38.4 32.3
2024 55.4 42.8
2025 80.0 56.7
2026 115 75.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1680 billion. This corresponds to a present value of 1000 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 231 billion. Adding in the terminal value gives a total present value of 1230 billion.

There are presently 860.0 million outstanding shares, so the intrinsic value per share is 1434.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 239,416,674,000
Current Cash 0
Current Liabilities 204,394,522,000
Current Debt 0
Non-Cash Working Capital (NCWC) 35,022,152,000
Change in NCWC 5,789,990,000
EBIT 13,648,449,000
Tax Provision 1,353,270,000
Depreciation and Amortization 0
Capital Expenditure -102,049,000
Unlevered Free Cash Flow 17,983,120,000
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.