Discounted Cash Flow (DCF) Analysis Levered

Abcam plc (ABCM)

$16.15

-0.13 (-0.80%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.13 | 16.15 | overvalue

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	217.10	233.20	259.90	260	297.70	322.56	349.50	378.69	410.31	444.58
Revenue (%)
Operating Cash Flow	66.38	63.30	70.20	63	71.90	85.88	93.05	100.82	109.24	118.36
Operating Cash Flow (%)
Capital Expenditure	-19.17	-37.40	-40.40	-35.70	-57.20	-47.32	-51.28	-55.56	-60.20	-65.23
Capital Expenditure (%)
Free Cash Flow	47.21	25.90	29.80	27.30	14.70	38.55	41.77	45.26	49.04	53.13

Weighted Average Cost Of Capital

Share price	$ 16.15
Beta	0.644
Diluted Shares Outstanding	209.60
Cost of Debt
Tax Rate	36.52
After-tax Cost of Debt	0.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.660
Total Debt	234.20
Total Equity	3,385.04
Total Capital	3,619.24
Debt Weighting	6.47
Equity Weighting	93.53
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	217.10	233.20	259.90	260	297.70	322.56	349.50	378.69	410.31	444.58
Operating Cash Flow	66.38	63.30	70.20	63	71.90	85.88	93.05	100.82	109.24	118.36
Capital Expenditure	-19.17	-37.40	-40.40	-35.70	-57.20	-47.32	-51.28	-55.56	-60.20	-65.23
Free Cash Flow	47.21	25.90	29.80	27.30	14.70	38.55	41.77	45.26	49.04	53.13
WACC
PV LFCF						36.27	36.98	37.70	38.44	39.18
SUM PV LFCF										188.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.28
Free cash flow (t + 1)	54.20
Terminal Value	1,266.27
Present Value of Terminal Value	933.83

Intrinsic Value

Enterprise Value	1,122.40
Net Debt	46.90
Equity Value	1,075.50
Shares Outstanding	209.60
Equity Value Per Share	5.13