DCF Tool

MSCI

MSCI Inc – Miscellaneous Financial Investment Activities
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, MSCI powers better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. MSCI creates industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process.
Analysis Results
Intrinsic Value $568.66
Latest Price $416.90
Relative Value 27% 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 29.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 29.4%, 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 1.57 1.43
2023 2.03 1.69
2024 2.62 2.0
2025 3.39 2.37
2026 4.39 2.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 60.7 billion. This corresponds to a present value of 35.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.3 billion. Adding in the terminal value gives a total present value of 45.8 billion.

There are presently 80.5 million outstanding shares, so the intrinsic value per share is 568.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,286,820,000
Current Cash 2,842,898,000
Current Liabilities 2,501,874,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,057,952,000
Change in NCWC -661,260,000
EBIT 2,145,450,000
Tax Provision 264,306,000
Depreciation and Amortization 268,250,000
Capital Expenditure -105,588,000
Unlevered Free Cash Flow 1,316,452,559
Current Assets 1,925,598,000
Current Cash 1,300,521,000
Current Liabilities 1,021,769,000
Current Debt 0
Non-Cash Working Capital (NCWC) -396,692,000
Change in NCWC -71,116,000
EBIT 884,764,000
Tax Provision 84,403,000
Depreciation and Amortization 110,795,000
Capital Expenditure -50,975,000
Unlevered Free Cash Flow 764,645,476
Current Assets 2,081,777,000
Current Cash 1,506,567,000
Current Liabilities 900,786,000
Current Debt 0
Non-Cash Working Capital (NCWC) -325,576,000
Change in NCWC -47,481,000
EBIT 755,701,000
Tax Provision 39,670,000
Depreciation and Amortization 79,409,000
Capital Expenditure -53,770,000
Unlevered Free Cash Flow 684,169,352
Current Assets 1,435,089,000
Current Cash 904,176,000
Current Liabilities 809,008,000
Current Debt 0
Non-Cash Working Capital (NCWC) -278,095,000
Change in NCWC -48,051,000
EBIT 686,898,000
Tax Provision 122,011,000
Depreciation and Amortization 85,535,000
Capital Expenditure -48,961,000
Unlevered Free Cash Flow 542,368,699
Current Assets 1,267,129,000
Current Cash 889,502,000
Current Liabilities 607,671,000
Current Debt 0
Non-Cash Working Capital (NCWC) -230,044,000
Change in NCWC 42,690,000
EBIT 579,188,000
Tax Provision 162,927,000
Depreciation and Amortization 79,987,000
Capital Expenditure -48,817,000
Unlevered Free Cash Flow 450,937,129
Current Assets 1,055,670,000
Current Cash 791,834,000
Current Liabilities 536,570,000
Current Debt 0
Non-Cash Working Capital (NCWC) -272,734,000
Change in NCWC -60,183,000
EBIT 488,104,000
Tax Provision 125,083,000
Depreciation and Amortization 81,353,000
Capital Expenditure -42,628,000
Unlevered Free Cash Flow 308,450,868
Current Assets 1,063,271,000
Current Cash 777,706,000
Current Liabilities 498,116,000
Current Debt 0
Non-Cash Working Capital (NCWC) -212,551,000
Change in NCWC -1,472,000
EBIT 403,898,000
Tax Provision 119,516,000
Depreciation and Amortization 77,799,000
Capital Expenditure -49,152,000
Unlevered Free Cash Flow 292,976,244
Current Assets 770,632,000
Current Cash 508,799,000
Current Liabilities 472,912,000
Current Debt 0
Non-Cash Working Capital (NCWC) -211,079,000
Change in NCWC -6,411,000
EBIT 337,166,000
Tax Provision 109,396,000
Depreciation and Amortization 74,547,000
Capital Expenditure -50,875,000
Unlevered Free Cash Flow 234,803,042
Current Assets 637,035,000
Current Cash 358,434,000
Current Liabilities 503,041,000
Current Debt 19,772,000
Non-Cash Working Capital (NCWC) -204,668,000
Change in NCWC 1,556,000
EBIT 371,506,000
Tax Provision 123,064,000
Depreciation and Amortization 80,505,000
Capital Expenditure -40,255,000
Unlevered Free Cash Flow 281,031,223
Current Assets 514,835,000
Current Cash 254,207,000
Current Liabilities 509,945,000
Current Debt 43,093,000
Non-Cash Working Capital (NCWC) -206,224,000
Change in NCWC -49,000,000
EBIT 346,885,000
Tax Provision 105,171,000
Depreciation and Amortization 81,998,000
Capital Expenditure -44,884,000
Unlevered Free Cash Flow 208,941,267

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