FCFF to FCFE FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029

Inputs
Debt Ratio 16.8%
Terminal growth rate 2.0% D 16.8%
Cost of equity 7.6% E 83.2%
Pre-tax cost of debt 5.6% Ke 7.6%
After-tax cost of debt 3.9% Kd 3.9%
Cost of capital 7.0% WACC 7.0%

Free Cash Flow to the Firm

EBIT 102.5 116.0 125.7 131.2 131.9 174.5 180.5 176.8
Tax Rate, % 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%
NOPAT 71.8 81.2 88.0 91.8 92.3 122.1 126.4 123.8
Add: Depreciation & amortization 207.5 201.8 197.9 196.5 198.1 156.1 149.1 150.3
Add: Stock-based compensation 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
Less: Change in WC (0.3) (2.1) (0.3) (0.4) (0.3) (0.3) (0.3) (0.3)
Less: CAPEX 200.0 185.0 170.0 160.0 155.0 150.0 145.0 140.0
FCFF 85.6 106.0 122.2 134.7 141.7 134.6 136.7 140.4
Terminal value 2,892.0
FCFF +Terminal Value 85.6 106.0 122.2 134.7 141.7 134.6 136.7 3,032.4

Value of Firm 2,423

Value of Debt 407.2
Value of equity 2,016

Free Cash Flow to Equity

EBIT 102.5 116.0 125.7 131.2 131.9 174.5 180.5 176.8
Interest Expense 22.9 23.7 24.3 24.8 25.3 25.7 26.2 26.8
EBT 79.6 92.3 101.4 106.3 106.6 148.7 154.3 150.1
Taxes 23.9 27.7 30.4 31.9 32.0 44.6 46.3 45.0
Net Income 55.7 64.6 71.0 74.4 74.6 104.1 108.0 105.0
Add: Depreciation & amortization 207.5 201.8 197.9 196.5 198.1 156.1 149.1 150.3
Add: Stock-based compensation 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
Add: New Debt Issued 13.9 11.5 9.5 8.1 7.5 9.2 9.5 9.5
Less: Change in WC (0.3) (2.1) (0.3) (0.4) (0.3) (0.3) (0.3) (0.3)
Less: CAPEX 200.0 185.0 170.0 160.0 155.0 150.0 145.0 140.0
FCFE 83.5 100.9 114.7 125.4 131.5 125.8 127.8 131.2
Terminal value 2,406.1
FCFE + Terminal Value 83.5 100.9 114.7 125.4 131.5 125.8 127.8 2,537.3
Value of Equity ₹ 2,016