US$ in millions, except per share data, based on values on 09/10/2024
|
Year |
Value |
FCFE or Terminal Value |
Present Value at 15.70% |
|
0 |
FCFE0 |
4,801 |
|
|
1 |
FCFE1 |
5,243 = 4,801 x (1+9.21%) |
4,546 |
|
2 |
FCFE2 |
5,767 = 5,243 x (1+ 9.99%) |
4,336 |
|
3 |
FCFE3 |
6,388 = 5,767 x (1+ 10.76%) |
4,164 |
|
4 |
FCFE4 |
7,124 = 6,388 x (1+11.53%) |
4,027 |
|
5 |
FCFE5 |
8,001 = 7,124 x (1+12.31%) |
3,922 |
|
5 |
Terminal Value (TV5) |
297,427 = 8,001 x (1+12.31%) / (15.33% - 12.31%) |
145,783 |
|
Intrinsic value of Intuit Inc. |
166,778 |
||
|
Less : Debt |
6,052 |
||
|
Intrinsic value of Intuit Inc. common stock |
16,0726 |
||
|
Intrinsic value of Intuit Inc. common stock (per share) |
$573.42 |
||
|
Current share price on 09/10/2024 |
$615.12 |
||
Source: Form 10 K 07/31/2024
Weighted Average Cost of Capital
US$ in millions, share price on 09/10/2024
|
|
Value |
Weight |
Required rate of return |
|
Equity |
No of shares x Current share price =280,292,000 x $615.12 |
0.97 |
15.74% |
|
Debt |
6,052 |
0.03 |
3.73% =weighted average interest rate x (1 -Tax rate) = 4.56% x(1- 18.16%) |
|
WACC = 15.33% |
= 0.97 X15.74% + 0.03 X3.73% |
||
FCFF Growth rate (G) Forecast
Intuit Inc. H-Model
|
Year |
Value |
g |
|
1 |
g1 (PRAT Model) |
9.21% |
|
2 |
g2 (Linear Interpolation) |
10.00% |
|
3 |
g3 (Linear Interpolation) |
10.79% |
|
4 |
g4 (Linear Interpolation) |
11.57% |
|
5 |
g5 (Single stage model) |
12.36% |
Source: https://www.stock-analysis-on.net , Form 10 K 07/31/2024
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