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DCF Valuation – Reliance Industries
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Current Share Price (₹)1,322.00
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Shares Outstanding (Crores)1,353.25
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Total Debt (₹ Crores)374,421
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Cash & Cash Equivalents (₹ Crores)145,977
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Base-Year FCF (₹ Crores)69,197
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Beta0.15
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WACC Calculation
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Risk-Free Rate0.0696
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Equity Risk Premium0.08
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Cost of Equity0.0816
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After-Tax Cost of Debt0.06
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Market Capitalization1,788,997
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Total Capital2,163,418
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Equity Weight82.69%
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Debt Weight17.31%
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Calculated WACC7.79%
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FCF ProjectionsYear 0 Year 1 Year 2 Year 3 Year 4 Year 5
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Year012345
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YoY Growth Rate-0.250.20.150.120.1
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Projected Free Cash Flow (FCF)₹ 69,197.00₹ 86,496.25₹ 103,795.50₹ 119,364.83₹ 133,688.60₹ 147,057.46
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DCF Valuation & Present Value
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Terminal Growth Rate0.05
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Discount Factor-0.92776280640.86074382490.79856610660.74087993210.687360845
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PV of FCF-₹ 80,248.00₹ 89,341.34₹ 95,320.70₹ 99,047.20₹ 101,081.54
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Terminal Value (TV)₹ 5,542,027.65
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PV of Terminal Value₹ 3,809,372.81
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Summary
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Sum of PV of FCFs₹ 465,038.79
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PV of Terminal Value₹ 3,809,372.81
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Enterprise Value (EV)₹ 4,274,411.60
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Less: Net Debt228,444
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Implied Equity Value₹ 4,045,967.60
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Implied Share Price (₹)₹ 2,989.82
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Valuation Premium / (Discount)
126%
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