DCF Tool

SPGI

S&P Global Inc – Investment Advice
S&P Global Ratings is an American credit rating agency and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is considered the largest of the Big Three credit-rating agencies, which also include Moodys Investors Service and Fitch Ratings.
Analysis Results
Intrinsic Value $192.60
Latest Price $371.69
Relative Value 93% 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 11.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.6%, 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)
2023 3.83 3.5
2024 4.28 3.56
2025 4.77 3.62
2026 5.32 3.69
2027 5.94 3.76
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 79.7 billion. This corresponds to a present value of 46.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.1 billion. Adding in the terminal value gives a total present value of 64.1 billion.

There are presently 333.0 million outstanding shares, so the intrinsic value per share is 192.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,667,000,000
Current Cash 1,300,000,000
Current Liabilities 5,999,000,000
Current Debt 226,000,000
Non-Cash Working Capital (NCWC) -1,406,000,000
Change in NCWC 107,000,000
EBIT 3,046,000,000
Tax Provision 1,180,000,000
Depreciation and Amortization 1,013,000,000
Capital Expenditure -89,000,000
Unlevered Free Cash Flow 3,312,584,857
Current Assets 8,810,000,000
Current Cash 6,508,000,000
Current Liabilities 3,815,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,513,000,000
Change in NCWC 203,000,000
EBIT 4,210,000,000
Tax Provision 901,000,000
Depreciation and Amortization 178,000,000
Capital Expenditure -35,000,000
Unlevered Free Cash Flow 3,645,046,589
Current Assets 5,988,000,000
Current Cash 4,117,000,000
Current Liabilities 3,587,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,716,000,000
Change in NCWC -441,000,000
EBIT 3,601,000,000
Tax Provision 694,000,000
Depreciation and Amortization 206,000,000
Capital Expenditure -76,000,000
Unlevered Free Cash Flow 2,515,807,311
Current Assets 4,712,000,000
Current Cash 2,894,000,000
Current Liabilities 3,093,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,275,000,000
Change in NCWC -315,000,000
EBIT 3,177,000,000
Tax Provision 627,000,000
Depreciation and Amortization 204,000,000
Capital Expenditure -115,000,000
Unlevered Free Cash Flow 2,271,143,686
Current Assets 3,604,000,000
Current Cash 1,935,000,000
Current Liabilities 2,629,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -960,000,000
Change in NCWC 322,000,000
EBIT 2,790,000,000
Tax Provision 560,000,000
Depreciation and Amortization 206,000,000
Capital Expenditure -113,000,000
Unlevered Free Cash Flow 2,622,232,375
Current Assets 4,324,000,000
Current Cash 2,791,000,000
Current Liabilities 3,214,000,000
Current Debt 399,000,000
Non-Cash Working Capital (NCWC) -1,282,000,000
Change in NCWC 58,000,000
EBIT 2,610,000,000
Tax Provision 823,000,000
Depreciation and Amortization 180,000,000
Capital Expenditure -123,000,000
Unlevered Free Cash Flow 1,852,171,881
Current Assets 3,671,000,000
Current Cash 2,400,000,000
Current Liabilities 2,611,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,340,000,000
Change in NCWC -384,000,000
EBIT 2,268,000,000
Tax Provision 960,000,000
Depreciation and Amortization 181,000,000
Capital Expenditure -115,000,000
Unlevered Free Cash Flow 1,267,038,895
Current Assets 3,296,000,000
Current Cash 1,487,000,000
Current Liabilities 2,908,000,000
Current Debt 143,000,000
Non-Cash Working Capital (NCWC) -956,000,000
Change in NCWC 1,545,000,000
EBIT 1,906,000,000
Tax Provision 547,000,000
Depreciation and Amortization 157,000,000
Capital Expenditure -139,000,000
Unlevered Free Cash Flow 2,894,574,655
Current Assets 3,966,000,000
Current Cash 2,500,000,000
Current Liabilities 3,967,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,501,000,000
Change in NCWC -1,505,000,000
EBIT 122,000,000
Tax Provision 245,000,000
Depreciation and Amortization 134,000,000
Capital Expenditure -92,000,000
Unlevered Free Cash Flow -1,586,000,000
Current Assets 2,936,000,000
Current Cash 1,560,000,000
Current Liabilities 2,372,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -996,000,000
Change in NCWC -924,000,000
EBIT 1,417,000,000
Tax Provision 443,000,000
Depreciation and Amortization 137,000,000
Capital Expenditure -117,000,000
Unlevered Free Cash Flow 46,632,243
Current Assets 3,899,000,000
Current Cash 761,000,000
Current Liabilities 3,667,000,000
Current Debt 457,000,000
Non-Cash Working Capital (NCWC) -72,000,000
Change in NCWC 952,000,000
EBIT 1,159,000,000
Tax Provision 404,000,000
Depreciation and Amortization 141,000,000
Capital Expenditure -97,000,000
Unlevered Free Cash Flow 1,740,631,858

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