DCF Tool

STT

State Street Corp. – Securities and Commodity Exchanges
State Street Corporation is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $33.52 trillion in assets under custody and/or administration and $3.05 trillion* in assets under management as of June 30, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide.
Analysis Results
Intrinsic Value $427.45
Latest Price $61.28
Relative Value 86% 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 13.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.4%, 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 4.94 4.64
2023 5.6 4.94
2024 6.35 5.27
2025 7.19 5.62
2026 8.16 5.98
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 190 billion. This corresponds to a present value of 131 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 26.5 billion. Adding in the terminal value gives a total present value of 157 billion.

There are presently 368.0 million outstanding shares, so the intrinsic value per share is 427.45.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 294,170,000,000
Current Cash 0
Current Liabilities 287,261,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,909,000,000
Change in NCWC 732,000,000
EBIT 3,183,000,000
Tax Provision 478,000,000
Depreciation and Amortization 1,557,000,000
Capital Expenditure -811,000,000
Unlevered Free Cash Flow 4,181,191,106
Current Assets 294,683,000,000
Current Cash 0
Current Liabilities 288,506,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,177,000,000
Change in NCWC 1,944,000,000
EBIT 2,949,000,000
Tax Provision 479,000,000
Depreciation and Amortization 1,510,000,000
Capital Expenditure -560,000,000
Unlevered Free Cash Flow 5,355,738,530
Current Assets 225,412,000,000
Current Cash 0
Current Liabilities 221,179,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,233,000,000
Change in NCWC -1,766,000,000
EBIT 2,789,000,000
Tax Provision 470,000,000
Depreciation and Amortization 1,337,000,000
Capital Expenditure -730,000,000
Unlevered Free Cash Flow 1,146,655,604
Current Assets 225,835,000,000
Current Cash 0
Current Liabilities 219,836,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,999,000,000
Change in NCWC -486,000,000
EBIT 3,023,000,000
Tax Provision 400,000,000
Depreciation and Amortization 1,203,000,000
Capital Expenditure -609,000,000
Unlevered Free Cash Flow 2,727,798,932
Current Assets 222,593,000,000
Current Cash 0
Current Liabilities 216,108,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,485,000,000
Change in NCWC 962,000,000
EBIT 3,165,000,000
Tax Provision 722,000,000
Depreciation and Amortization 1,085,000,000
Capital Expenditure -637,000,000
Unlevered Free Cash Flow 3,786,752,328
Current Assets 227,002,000,000
Current Cash 0
Current Liabilities 221,479,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,523,000,000
Change in NCWC -475,000,000
EBIT 2,329,000,000
Tax Provision -22,000,000
Depreciation and Amortization 929,000,000
Capital Expenditure -613,000,000
Unlevered Free Cash Flow 2,170,000,000
Current Assets 230,055,000,000
Current Cash 0
Current Liabilities 224,057,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,998,000,000
Change in NCWC -738,000,000
EBIT 2,323,000,000
Tax Provision 318,000,000
Depreciation and Amortization 793,000,000
Capital Expenditure -703,000,000
Unlevered Free Cash Flow 1,353,540,469
Current Assets 259,382,000,000
Current Cash 0
Current Liabilities 252,646,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,736,000,000
Change in NCWC 1,477,000,000
EBIT 2,591,000,000
Tax Provision 421,000,000
Depreciation and Amortization 699,000,000
Capital Expenditure -427,000,000
Unlevered Free Cash Flow 3,896,220,097
Current Assets 228,172,000,000
Current Cash 0
Current Liabilities 222,913,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,259,000,000
Change in NCWC -693,000,000
EBIT 2,790,000,000
Tax Provision 550,000,000
Depreciation and Amortization 675,000,000
Capital Expenditure -388,000,000
Unlevered Free Cash Flow 1,812,704,393
Current Assets 207,665,000,000
Current Cash 0
Current Liabilities 201,713,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,952,000,000
Change in NCWC -1,238,000,000
EBIT 2,629,000,000
Tax Provision 705,000,000
Depreciation and Amortization 456,000,000
Capital Expenditure -355,000,000
Unlevered Free Cash Flow 821,918,655

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