DCF Tool

SPGI

S&P Global Inc – Investment Advice
S&P Global is the world's foremost provider of credit ratings, benchmarks and analytics in the global capital and commodity markets, offering ESG solutions, deep data and insights on critical business factors. The Company has been providing essential intelligence that unlocks opportunity, fosters growth and accelerates progress for more than 160 years. Its divisions include S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices and S&P Global Platts.
Analysis Results
Intrinsic Value $730.21
Latest Price $305.35
Relative Value 58% 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 29.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 29.7%, 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 6.47 5.99
2023 8.39 7.2
2024 10.9 8.65
2025 14.1 10.4
2026 18.3 12.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 314 billion. This corresponds to a present value of 199 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 44.7 billion. Adding in the terminal value gives a total present value of 244 billion.

There are presently 334.0 million outstanding shares, so the intrinsic value per share is 730.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 17,620,000,000
Current Cash 13,016,000,000
Current Liabilities 7,630,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,026,000,000
Change in NCWC -1,310,000,000
EBIT 8,420,000,000
Tax Provision 1,802,000,000
Depreciation and Amortization 356,000,000
Capital Expenditure -70,000,000
Unlevered Free Cash Flow 5,574,093,179
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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