DCF Tool

WIT

Wipro Ltd. – Data Processing, Hosting, and Related Services
Analysis Results
Intrinsic Value $42.98
Latest Price $5.47
Relative Value 87% 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 55.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 55.5%, 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 3.17 2.94
2024 4.93 4.23
2025 7.67 6.1
2026 11.9 8.79
2027 18.6 12.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 318 billion. This corresponds to a present value of 201 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 34.7 billion. Adding in the terminal value gives a total present value of 236 billion.

There are presently 5.48 billion outstanding shares, so the intrinsic value per share is 42.98.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,198,696,630
Current Cash 4,563,136,160
Current Liabilities 4,072,312,185
Current Debt 1,377,416,219
Non-Cash Working Capital (NCWC) 940,664,504
Change in NCWC 516,584,256
EBIT 1,767,214,614
Tax Provision 382,309,638
Depreciation and Amortization 408,262,738
Capital Expenditure -266,174,467
Unlevered Free Cash Flow 2,087,736,130
Current Assets 7,113,817,330
Current Cash 4,697,801,332
Current Liabilities 3,127,879,069
Current Debt 1,135,943,318
Non-Cash Working Capital (NCWC) 424,080,248
Change in NCWC -225,871,699
EBIT 1,635,310,762
Tax Provision 412,604,287
Depreciation and Amortization 376,041,660
Capital Expenditure -266,190,612
Unlevered Free Cash Flow 1,162,304,455
Current Assets 6,883,391,798
Current Cash 4,424,297,029
Current Liabilities 2,865,278,322
Current Debt 1,056,135,501
Non-Cash Working Capital (NCWC) 649,951,947
Change in NCWC -61,597,593
EBIT 1,343,255,210
Tax Provision 328,365,691
Depreciation and Amortization 276,235,536
Capital Expenditure -311,125,797
Unlevered Free Cash Flow 974,864,310
Current Assets 8,235,973,525
Current Cash 5,461,477,550
Current Liabilities 3,086,837,566
Current Debt 1,023,891,131
Non-Cash Working Capital (NCWC) 711,549,541
Change in NCWC -696,280,255
EBIT 1,329,320,280
Tax Provision 363,508,065
Depreciation and Amortization 280,443,549
Capital Expenditure -328,067,397
Unlevered Free Cash Flow 294,685,314
Current Assets 7,777,490,953
Current Cash 4,517,836,620
Current Liabilities 3,280,705,476
Current Debt 1,428,880,940
Non-Cash Working Capital (NCWC) 1,407,829,796
Change in NCWC 62,140,130
EBIT 1,272,549,309
Tax Provision 344,040,221
Depreciation and Amortization 324,587,121
Capital Expenditure -336,050,006
Unlevered Free Cash Flow 1,045,181,596

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