Discounted Cash Flow (DCF) Analysis Levered

AbbVie Inc. (ABBV)

$145.55

+0.35 (+0.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 650.20 | 145.55 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,21632,75333,26645,80456,19767,159.0880,259.4895,915.32114,625.06136,984.42
Revenue (%)
Operating Cash Flow 9,96013,42713,32417,58822,77726,229.0831,345.4737,459.8844,766.9953,499.48
Operating Cash Flow (%)
Capital Expenditure -529-638-552-798-787-1,158.46-1,384.43-1,654.49-1,977.22-2,362.91
Capital Expenditure (%)
Free Cash Flow 9,43112,78912,77216,79021,99025,070.6329,961.0335,805.3942,789.7851,136.57

Weighted Average Cost Of Capital

Share price $ 145.55
Beta 0.624
Diluted Shares Outstanding 1,777
Cost of Debt
Tax Rate 11.14
After-tax Cost of Debt 2.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.563
Total Debt 76,684
Total Equity 258,642.35
Total Capital 335,326.35
Debt Weighting 22.87
Equity Weighting 77.13
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,21632,75333,26645,80456,19767,159.0880,259.4895,915.32114,625.06136,984.42
Operating Cash Flow 9,96013,42713,32417,58822,77726,229.0831,345.4737,459.8844,766.9953,499.48
Capital Expenditure -529-638-552-798-787-1,158.46-1,384.43-1,654.49-1,977.22-2,362.91
Free Cash Flow 9,43112,78912,77216,79021,99025,070.6329,961.0335,805.3942,789.7851,136.57
WACC
PV LFCF 17,976.9220,325.0622,979.9225,981.5529,375.26
SUM PV LFCF 153,892.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.70
Free cash flow (t + 1) 52,159.30
Terminal Value 1,409,710.93
Present Value of Terminal Value 1,068,452.28

Intrinsic Value

Enterprise Value 1,222,344.85
Net Debt 66,938
Equity Value 1,155,406.85
Shares Outstanding 1,777
Equity Value Per Share 650.20