Discounted Cash Flow (DCF) Analysis Levered
Abbott Laboratories (ABT)
$101.71
-1.16 (-1.13%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 30,578 | 31,904 | 34,608 | 43,075 | 43,653 | 47,867.61 | 52,489.12 | 57,556.84 | 63,113.83 | 69,207.34 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,300 | 6,136 | 7,901 | 10,533 | 9,581 | 10,441.51 | 11,449.61 | 12,555.05 | 13,767.21 | 15,096.41 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,394 | -1,638 | -2,177 | -1,885 | -1,777 | -2,338.84 | -2,564.65 | -2,812.26 | -3,083.78 | -3,381.51 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 4,906 | 4,498 | 5,724 | 8,648 | 7,804 | 8,102.67 | 8,884.97 | 9,742.79 | 10,683.44 | 11,714.90 |
Weighted Average Cost Of Capital
| Share price | $ 101.71 |
|---|---|
| Beta | 0.663 |
| Diluted Shares Outstanding | 1,786 |
| Cost of Debt | |
| Tax Rate | 16.53 |
| After-tax Cost of Debt | 1.29% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.829 |
| Total Debt | 24,295 |
| Total Equity | 181,654.06 |
| Total Capital | 205,949.06 |
| Debt Weighting | 11.80 |
| Equity Weighting | 88.20 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 30,578 | 31,904 | 34,608 | 43,075 | 43,653 | 47,867.61 | 52,489.12 | 57,556.84 | 63,113.83 | 69,207.34 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,300 | 6,136 | 7,901 | 10,533 | 9,581 | 10,441.51 | 11,449.61 | 12,555.05 | 13,767.21 | 15,096.41 |
| Capital Expenditure | -1,394 | -1,638 | -2,177 | -1,885 | -1,777 | -2,338.84 | -2,564.65 | -2,812.26 | -3,083.78 | -3,381.51 |
| Free Cash Flow | 4,906 | 4,498 | 5,724 | 8,648 | 7,804 | 8,102.67 | 8,884.97 | 9,742.79 | 10,683.44 | 11,714.90 |
| WACC | ||||||||||
| PV LFCF | 7,631.07 | 7,880.80 | 8,138.70 | 8,405.05 | 8,680.10 | |||||
| SUM PV LFCF | 40,735.72 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.18 |
| Free cash flow (t + 1) | 11,949.20 |
| Terminal Value | 285,865.97 |
| Present Value of Terminal Value | 211,811.16 |
Intrinsic Value
| Enterprise Value | 252,546.89 |
|---|---|
| Net Debt | 14,413 |
| Equity Value | 238,133.89 |
| Shares Outstanding | 1,786 |
| Equity Value Per Share | 133.33 |