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Colgate's DCF Analysis for Investors

This document presents a two-stage discounted cash flow (DCF) calculation for Colgate. It provides Colgate's 3-year average free cash flow, growth rates for years 1-5 and 6-10, terminal growth rate, discount rate, shares outstanding, and net debt level. It then shows the projected annual free cash flows, growth rates, and present values for years 1-10 and the terminal year. It calculates the total present value of cash flows and the implied intrinsic value per share.

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Nihal Yn
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213 views12 pages

Colgate's DCF Analysis for Investors

This document presents a two-stage discounted cash flow (DCF) calculation for Colgate. It provides Colgate's 3-year average free cash flow, growth rates for years 1-5 and 6-10, terminal growth rate, discount rate, shares outstanding, and net debt level. It then shows the projected annual free cash flows, growth rates, and present values for years 1-10 and the terminal year. It calculates the total present value of cash flows and the implied intrinsic value per share.

Uploaded by

Nihal Yn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Colgate's 2-Stage D

(All figures, except per share numbers, are in Rs m


(Figures in "red" are entered figures. Rest is all ca

3-Year Avg. FCF

Years:
Growth Rate:
Terminal Growth Rate:
Discount Rate:
Shares Outstanding (Nos.):
Net Debt Level:

Year
1
2
3
4
5
6
7
8
9
10
Terminal Year CF:
PV of Year 1-10 Cash Flows:
Terminal Value:
Total PV of Cash Flows:
Intrinsic Value per Share (IV):
e's 2-Stage DCF Calculation
mbers, are in Rs million)
gures. Rest is all calculation)

1,165,500,000

1-5 6-10
18% 12%
4%
12%
303,286,240
- Net Debt = Long Term Borrowings

FCF Growth Present Value (PV)


1,375,290,000 18% 1,233,443,946
1,622,842,200 18% 1,305,348,750
1,914,953,796 18% 1,381,445,314
2,259,645,479 18% 1,461,978,001
2,666,381,666 18% 1,547,205,418
2,986,347,465 12% 1,554,143,559
3,344,709,161 12% 1,561,112,812
3,746,074,261 12% 1,568,113,318
4,195,603,172 12% 1,575,145,216
4,699,075,553 12% 1,582,208,648
4,887,038,575
14,770,144,982 PV = Present Value
21,939,959,917
36,710,104,899
121
CFO 206

-1.33

DISCOUNT RATE =CA


ERi​=Rf​+βi​(ERm​−Rf​)
erm Borrowings - Cash ERi​=Expected return of
Rf​=Risk-free rate
βi​=Beta of the investmen
(ERm​−Rf​)=Market risk 

Terminal Growth Rate:


Can be between inflatio
conservative 4%

Growth Rate:
131 138

-120.42 -3.6

0 0

349.65 116.55 1165500000

OUNT RATE =CAPM


f​+βi​(ERm​−Rf​)
Expected return of investment
sk-free rate
a of the investment can be found at returs.com
−Rf​)=Market risk premium​

nal Growth Rate:


e between inflation rate and gdp rate conservative estimate
vative 4%

h Rate: FCF growth


Colgate's 2-Stage D
(All figures, except per share numbers, are in Rs m
(Figures in "red" are entered figures. Rest is all ca

3-Year Avg. FCF

Years:
Growth Rate:
Terminal Growth Rate:
Discount Rate:
Shares Outstanding (Nos.):
Net Debt Level:

Year
1
2
3
4
5
6
7
8
9
10
Terminal Year CF:
PV of Year 1-10 Cash Flows:
Terminal Value:
Total PV of Cash Flows:
Intrinsic Value per Share (IV):
e's 2-Stage DCF Calculation
mbers, are in Rs million)
gures. Rest is all calculation)

2,871,566,667

1-5 6-10
14% 14%
4%
12%
72,013,140
- Net Debt = Long Term Borrowings

FCF Growth Present Value (PV)


3,273,586,000 14% 2,935,951,570
3,731,888,040 14% 3,001,780,080
4,254,352,366 14% 3,069,084,566
4,849,961,697 14% 3,137,898,121
5,528,956,334 14% 3,208,254,582
6,303,010,221 14% 3,280,188,541
7,185,431,652 14% 3,353,735,369
8,191,392,083 14% 3,428,931,229
9,338,186,975 14% 3,505,813,095
10,645,533,152 14% 3,584,418,770
11,071,354,478
32,506,055,924 PV = Present Value
49,703,940,281
82,209,996,204
1,142
CFO 279

-23.33

DISCOUNT RATE =CA


ERi​=Rf​+βi​(ERm​−Rf​)
erm Borrowings - Cash ERi​=Expected return of
Rf​=Risk-free rate
βi​=Beta of the investmen
(ERm​−Rf​)=Market risk 

Terminal Growth Rate:


Can be between inflatio
conservative 4%

Growth Rate:
291 379

-33.87 -33.47

1.45 1.69

861.47 287.156667 2871566666.667

OUNT RATE =CAPM


f​+βi​(ERm​−Rf​)
Expected return of investment
sk-free rate
a of the investment can be found at returs.com
−Rf​)=Market risk premium​

nal Growth Rate:


e between inflation rate and gdp rate conservative estimate
vative 4%

h Rate: FCF growth

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