Derwent London Plc (DLN.L) Discounted Free Cash Flow - Perpetuity - Discounting Cash Flows
DLN.L
Derwent London Plc
DLN.L (LSE)

Estimated Value

GBp

Market Price GBp

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Free Cash Flow Model

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

See our GitHub Model Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Equity Weight * Cost of Equity + Debt Weight * Cost of Debt * (1 - Tax Rate)

Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.

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Cost of Equity

Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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Cost of Debt

Cost of Debt = Interest Expense / Total Debt

The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.

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Equity & Debt Weights

Debt Weight = Total Debt / (Market Capitalization + Total Debt) = 1 - Equity Weight

The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt).


Tax Rate

Tax Rate = Income Tax Expense / Income Before Tax

The overall tax rate paid by the company on its earned income.

↳ Beta

Beta

Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.

↳ Market Premium

Market Premium

The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow indefinitely. By default, this rate equals the yield of the U.S. 10-Year Treasury Bond.

Historical Years

Historical Years

The number of years of historical data used to calculate averages and trends for analysis.

Projection Years

Projection Years

The number of years into the future for which the analysis projects financial performance and metrics.

Revenue Growth Rate

Revenue Growth Rate

The annual growth rate applied to projected revenue, starting from the second projection year onward.

Operating Cash Flow Margin

Operating Cash Flow Margin

Projected Operating Cash Flow = Projected Revenue * Operating Cash Flow Margin

This margin represents the percentage of revenue used to estimate future Operating Cash Flow.

Capital Expenditure Margin

Capital Expenditure Margin

Projected Free Cash Flow = Projected Operating Cash Flow - Projected Revenue * Capital Expenditure Margin

This margin is used to estimate future capital expenditures as a percentage of revenue, which in turn is subtracted from Operating Cash Flow to calculate Free Cash Flow.

Results

Terminal Value 710 Bil. GBp
Discounted Terminal Value 527.6 Bil. GBp
Sum of Discounted Free Cash Flow 45.77 Bil. GBp
Enterprise Value 573.4 Bil. GBp
Cash and Equivalents 7.14 Bil. GBp
Total Debt 149.8 Bil. GBp
Equity Value 430.7 Bil. GBp
Shares Outstanding 112.9 Mil. GBp
Estimated Value per Share 3.81 Thou. GBp
Yield of the U.S. 10 Year Treasury Note 4.43%
Average Cash from Operating Activities Margin 39.93%
Average Capital Expenditure Margin 5.43%
Cost of Equity 10.3%
Equity Weight 59.42%
Cost of Debt
Debt Weight 40.58%
Tax Rate 0.086%

Monetary values are in GBp

Edit Chart Values 2025 2026 2027 2028 2029

amounts of GBp except for #

2024 2025 2026 2027 2028 2029
Revenue 27,170 28,325 29,491 30,706 31,970 33,286
Revenue Growth Rate 1.46% 4.25% 4.12% 4.12% 4.12% 4.12%
Operating Cash Flow 6,460 11,310 11,776 12,261 12,766 13,291
Operating Cash Flow Margin 23.78% 39.93% 39.93% 39.93% 39.93% 39.93%
Capital Expenditure -14,150 -1,538 -1,601 -1,667 -1,736 -1,807
Capital Expenditure Margin -52.08% -5.43% -5.43% -5.43% -5.43% -5.43%
Free Cash Flow -7,690 9,772 10,175 10,593 11,030 11,484
Free Cash Flow Margin -28.3% 34.5% 34.5% 34.5% 34.5% 34.5%
Compounded Discount Rate
2.8% 9.1% 15.77% 22.87% 30.39%
Discounted Free Cash Flow -7,690 9,506 9,326 9,150 8,976 8,807

amounts of GBp except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 23,851 27,170 27,170 26,780 24,900 24,030 26,690 22,760 22,850 20,370 19,420 20,220
Revenue Growth Rate 4.53% 0% 1.46% 7.55% 3.62% -9.97% 17.27% -0.394% 12.17% 4.89% -3.96% 12.65%
Cost of Revenue 5,815 7,900 7,900 7,250 5,650 5,230 7,030 4,840 4,330 3,870 4,290 5,670
Gross Profit 18,036 19,270 19,270 19,530 19,250 18,800 19,660 17,920 18,520 16,500 15,130 14,550
Gross Margin 75.88% 70.92% 70.92% 72.93% 77.31% 78.24% 73.66% 78.73% 81.05% 81% 77.91% 71.96%
Operating Income 9,275 15,640 15,640 -42,890 16,370 15,300 14,570 14,280 15,450 13,670 12,040 11,960
Operating Margin 41.59% 57.56% 57.56% -160.2% 65.74% 63.67% 54.59% 62.74% 67.61% 67.11% 62% 59.15%
Net Income 11,765 11,590 11,590 -47,640 -28,050 25,230 -7,760 28,340 22,230 31,400 5,870 76,620
Net Margin 59.61% 42.66% 42.66% -177.9% -112.7% 105% -29.07% 124.5% 97.29% 154.1% 30.23% 378.9%
Cash from Operating Activities 9,383 6,460 6,460 9,700 11,140 12,890 8,580 12,740 11,520 8,350 7,770 7,600
Cash from Operating Activities Margin 39.94% 23.78% 23.78% 36.22% 44.74% 53.64% 32.15% 55.98% 50.42% 40.99% 40.01% 37.59%
Capital Expenditure -1,435 -20 -14,150 -70 -200 -160 -40 -30 -80 -500 -450 -90
Free Cash Flow 7,947 6,440 -7,690 9,630 10,940 12,730 8,540 12,710 11,440 7,850 7,320 7,510
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Discounting Cash Flows

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