The Discounted Cash Flow (DCF) Model

Module 3, Chapter 15
Version 1.0

Free Cash Flow Estimate (In INR Crs)

2019-20 2020-21 2021-22
Net cash from Operating Activities 157.00 88.00 57.00
Capital Expenditures 20.00 20.00 9.00
Free Cash Flow (FCF) 137.00 68.00 48.00
3 Year Average Free Cash flow 84.33

Inputs Cash flow & Present Value Table

Number of years considered 10 Sl No
FCF Growth rate for first 5 years 5% 1
FCF Growth rate for last 5 years 5% 2
Terminal Growth Rate 3.50% 3
Discount Rate 9% 4
5
Intrinsic Value Calculation (INR Crs, unless indicated) 6
Total PV of cash flow 1,782.51 7
Total Debt 40.00 8
Cash & Cash Balance 137.25 9
Net Debt (97.25) 10
Share Capital 14.00
Face Value (INR) 2.00 Terminal Year
Number of Shares 69,957,000 Terminal Value
Share Price (INR) 268.70 PV of Terminal Value

Intrinsic Value Band

Model Error leeway 10%
Lower Intrinsic value band 241.8
Upper Intrinsic value band 295.6

Disclaimer – This DCF model is for educational purpose only.

ash flow & Present Value Table
Year Cash flow PV of Cash flow
2022 - 23 88.55 81.24
2023 - 24 92.98 78.26
2024 - 25 97.63 75.39
2025-26 102.51 72.62
2026-27 107.63 69.95
2027-28 113.01 67.39
2028-29 118.67 64.91
2029-30 124.60 62.53
2030-31 130.83 60.24
2031-32 137.37 58.03

erminal Year 2031-32

erminal Value 2,585.06
V of Terminal Value 1,091.96
 The Discounted Cash Flow (DCF) Model
Module 3, Chapter 15
Version 1.0

Free Cash Flow Estimate (In INR Crs)

2019-20 2020-21 2021-22
Net cash from Operating Activities 2,226.30 1,839.00 2,140.00
Capital Expenditures 1,545.00 750.00 2,270.00
Free Cash Flow (FCF) 681.30 1,089.00 (130.00)
3 Year Average Free Cash flow 546.77

Inputs Cash flow & Present Value Table

Number of years considered 10 Sl No
FCF Growth rate for first 5 years 15% 1
FCF Growth rate for last 5 years 10% 2
Terminal Growth Rate 3.50% 3
Discount Rate 9% 4
5
Intrinsic Value Calculation (INR Crs, unless indicated) 6
Total PV of cash flow 20,972.04 7
Total Debt 7,250.00 8
Cash & Cash Balance 2,068.00 9
Net Debt 5,182.00 10
Share Capital 563.10
Face Value (INR) 10.00 Terminal Year
Number of Shares 563,100,000 Terminal Value
Share Price (INR) 280.41 PV of Terminal Value

Intrinsic Value Band

Model Error leeway 10%
Lower Intrinsic value band 252.4
Upper Intrinsic value band 308.5

Disclaimer – This DCF model is for educational purpose only.

ash flow & Present Value Table
Year Cash flow PV of Cash flow
2022 - 23 628.78 576.86
2023 - 24 723.10 608.62
2024 - 25 831.56 642.12
2025-26 956.30 677.47
2026-27 1,099.74 714.76
2027-28 1,209.72 721.31
2028-29 1,330.69 727.93
2029-30 1,463.76 734.61
2030-31 1,610.13 741.35
2031-32 1,771.15 748.15

erminal Year 2031-32

erminal Value 33,329.77
V of Terminal Value 14,078.86
 The Discounted Cash Flow (DCF) Model
Module 3, Chapter 15
Version 1.0

Free Cash Flow Estimate (In INR Crs)

2019-20 2020-21 2021-22
Net cash from Operating Activities 3,408.00 2,805.92 2,499.07
Capital Expenditures 918.80 682.81 778.07
Free Cash Flow (FCF) 2,489.20 2,123.11 1,721.00
3 Year Average Free Cash flow 2,111.10

Inputs Cash flow & Present Value Table

Number of years considered 10 Sl No
FCF Growth rate for first 5 years 15% 1
FCF Growth rate for last 5 years 10% 2
Terminal Growth Rate 3.50% 3
Discount Rate 9% 4
5
Intrinsic Value Calculation (INR Crs, unless indicated) 6
Total PV of cash flow 80,974.48 7
Total Debt 8,351.00 8
Cash & Cash Balance 2,152.70 9
Net Debt 6,198.30 10
Share Capital 138.90
Face Value (INR) 1.00 Terminal Year
Number of Shares 1,389,000,000 Terminal Value
Share Price (INR) 538.35 PV of Terminal Value

Intrinsic Value Band

Model Error leeway 10%
Lower Intrinsic value band 484.5
Upper Intrinsic value band 592.2

Disclaimer – This DCF model is for educational purpose only.

ash flow & Present Value Table
Year Cash flow PV of Cash flow
2022 - 23 2,427.77 2,227.31
2023 - 24 2,791.93 2,349.92
2024 - 25 3,210.72 2,479.27
2025-26 3,692.33 2,615.74
2026-27 4,246.18 2,759.73
2027-28 4,670.80 2,785.05
2028-29 5,137.88 2,810.60
2029-30 5,651.67 2,836.38
2030-31 6,216.84 2,862.40
2031-32 6,838.52 2,888.66

erminal Year 2031-32

erminal Value 128,688.51
V of Terminal Value 54,359.42
 The Discounted Cash Flow (DCF) Model
Module 3, Chapter 15
Version 1.0

Free Cash Flow Estimate (In INR Crs)

2019-20 2020-21 2021-22
Net cash from Operating Activities 449.15 (184.43) 391.30
Capital Expenditures 27.70 21.08 81.98
Free Cash Flow (FCF) 421.45 (205.51) 309.32
3 Year Average Free Cash flow 175.09

Inputs Cash flow & Present Value Table

Number of years considered 10 Sl No
FCF Growth rate for first 5 years 15% 1
FCF Growth rate for last 5 years 10% 2
Terminal Growth Rate 3.50% 3
Discount Rate 9% 4
5
Intrinsic Value Calculation (INR Crs, unless indicated) 6
Total PV of cash flow 6,715.71 7
Total Debt 0.86 8
Cash & Cash Balance 137.25 9
Net Debt (136.39) 10
Share Capital 51.00
Face Value (INR) 10.00 Terminal Year
Number of Shares 51,000,000 Terminal Value
Share Price (INR) 1,343.55 PV of Terminal Value

Intrinsic Value Band

Model Error leeway 10%
Lower Intrinsic value band 1,209.2
Upper Intrinsic value band 1,477.9

Disclaimer – This DCF model is for educational purpose only.

ash flow & Present Value Table
Year Cash flow PV of Cash flow
2022 - 23 201.35 184.72
2023 - 24 231.55 194.89
2024 - 25 266.28 205.62
2025-26 306.23 216.94
2026-27 352.16 228.88
2027-28 387.38 230.98
2028-29 426.12 233.10
2029-30 468.73 235.24
2030-31 515.60 237.40
2031-32 567.16 239.57

erminal Year 2031-32

erminal Value 10,672.92
V of Terminal Value 4,508.36
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