Scribd
Upload
131 views6 pages

ITC Corporate Valuation

The document contains financial information for ITC Ltd. from 2014-15 to 2019-20 including calculations of free cash flow to the firm (FCFF), capital invested, return on invested capital (ROIC), working capital, capital structure, cost of equity and weighted average cost of capital (WACC). Key metrics like EBIT, net profit, capital expenditures, depreciation are provided annually to calculate FCFF. Capital invested includes net fixed assets and operating working capital. ROIC is calculated as net profit after tax divided by average invested capital.

Uploaded by

Sakshi Jain Jaipuria Jaipur
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
131 views6 pages

ITC Corporate Valuation

The document contains financial information for ITC Ltd. from 2014-15 to 2019-20 including calculations of free cash flow to the firm (FCFF), capital invested, return on invested capital (ROIC), working capital, capital structure, cost of equity and weighted average cost of capital (WACC). Key metrics like EBIT, net profit, capital expenditures, depreciation are provided annually to calculate FCFF. Capital invested includes net fixed assets and operating working capital. ROIC is calculated as net profit after tax divided by average invested capital.

Uploaded by

Sakshi Jain Jaipuria Jaipur
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
You are on page 1/ 6

ITC Ltd.

FCFF Calculation 2015-16 2016-17 2017-18 2018-19 2019-20


EBIT 15007.52 15525.91 16938.35 18478.35 19354.64
less: Taxes 5193.80 5373.21 5862.02 6457.07 4871.18
NOPAT 9813.72 10152.70 11076.33 12021.28 14483.46
Add: Depreciation 1000.68 1038.04 1145.37 1311.70 1563.27
Less: Capital Expenditure 2177.10 2897.11 2547.81 2759.48 2113.60
Less: Investment in Working Capital 345.88 2531.05 -86.22 -1363.22 -883.59
FCFF 8291.42 5762.58 9760.11 11936.72 14816.72

ITC Ltd. Capital Invested Calculation 2015-16 2016-17 2017-18 2018-19 2019-20
Net Fixed Assets 16705.36 18417.26 20591.57 21887.76 22617.58
Add: Operating Working Capital 8843.86 11374.91 11288.69 9925.47 9041.88
Capital Invested 25549.22 29792.17 31880.26 31813.23 31659.46

ITC Ltd. Return On Invested Capital Calculation 2015-16 2016-17 2017-18 2018-19 2019-20
NOPAT 9813.72 10152.70 11076.33 12021.28 14483.46
Invested Capital 25549.22 29792.17 31880.26 31813.23 31659.46
ROIC 0.38 0.34 0.35 0.38 0.46
Working Capital 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Tax Rate 34.608% 34.608% 34.608% 34.944% 25.168%

Inventories 7836.76 8519.82 10099.78 9903.45 7587.24 8038.07


Trade Receivables 1722.4 1686.35 2207.5 2357.01 3646.22 2092
Loans and Advances 549.89 501.84 1008.28 1152.1 1365.38 1510.81
Other Current Assets 293.55 401.44 610.57 1258.41 694.91 847.74
Less: Trade Payables 1904.62 2265.59 2551.22 3382.28 3368.28 3446.74
Working capital 8497.98 8843.86 11374.91 11288.69 9925.47 9041.88
Capital Structure of ITC Ltd. 2015-16 2016-17 2017-18 2018-19 2019-20
Equity Proportion 32929.000 45340.960 51400.070 57949.790 64029.160
Debt Proportion 25.830 17.990 11.130 7.890 5.630
Total Capital 32954.830 45358.950 51411.200 57957.680 64034.790

Weight of Equity in Capital Structure 0.999 1.000 1.000 1.000 1.000


Weight of Debt in Capital Structure 0.001 0.000 0.000 0.000 0.000

Cost of Equity 21.640% 19.634% 19.550% 19.727% 21.753%


WACC 21.623% 19.626% 19.546% 19.724% 21.751%
WACC through CAPM -1.081% 7.199% 4.405% 7.010% -11.286%
Ke Through CAPM 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Nifty Closing 8491.000 7738.400 9173.750 10113.700 11623.900 8597.750
Market Return N/A -0.089 0.185 0.102 0.149 -0.260
Beta N/A 0.355 0.261 0.172 0.325 0.495
Risk Free Rate N/A 0.032 0.032 0.032 0.032 0.032
Ke N/A -0.011 0.072 0.044 0.070 -0.113
Ke Through DDM
DPS 6.250 8.500 4.750 5.150 5.750 10.150
MPS N/A 215.482 245.027 277.658 282.965 250.136
Growth in Dividend 36.000% -44.118% 8.421% 11.650% 76.522%
Average Growth Rate 17.695%
ITC Ltd. FCFE Calculation 2015-16 2016-17 2017-18 2018-19 2019-20
Net Income 9844.71 10277.9 11605.59 12826.88 13754.24
Add: Depreciation 1000.68 1038.04 1145.37 1311.7 1563.27
Less: Capital Expenditure 2177.1 2897.11 2547.81 2759.48 2113.6
Less: Investment in Working Capital 345.88 2531.05 -86.22 -1363.22 -883.59
Net short term borrowings 3.58 -3.59 -0.01 0 0
Net Long-term borrowings -12.86 -7.84 -6.86 -3.24 -2.26
FCFE 8313.13 5876.35 10282.5 12739.08 14085.24
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Non-Current Borrowings 38.69 25.83 17.99 11.13 7.89 5.63
Cuurent Borrowings 0.02 3.6 0.01 0 0 0

You might also like