Discounted Cash Flow (DCF) Analysis Levered

Abbott Laboratories (ABT)

$96.85

-1.27 (-1.29%)
All numbers are in Millions, Currency in USD
Stock DCF: 108.65 | 96.85 | undervalue

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 30,57831,90434,60843,07543,65347,867.6152,489.1257,556.8463,113.8369,207.34
Revenue (%)
Operating Cash Flow 6,3006,1367,90110,5339,58110,441.5111,449.6112,555.0513,767.2115,096.41
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 4,9064,4985,7248,6487,8048,102.678,884.979,742.7910,683.4411,714.90

Weighted Average Cost Of Capital

Share price $ 96.85
Beta 0.673
Diluted Shares Outstanding 1,786
Cost of Debt
Tax Rate 16.53
After-tax Cost of Debt 1.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.751
Total Debt 17,716
Total Equity 172,974.10
Total Capital 190,690.10
Debt Weighting 9.29
Equity Weighting 90.71
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 30,57831,90434,60843,07543,65347,867.6152,489.1257,556.8463,113.8369,207.34
Operating Cash Flow 6,3006,1367,90110,5339,58110,441.5111,449.6112,555.0513,767.2115,096.41
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 4,9064,4985,7248,6487,8048,102.678,884.979,742.7910,683.4411,714.90
WACC
PV LFCF 7,558.467,731.547,908.598,089.698,274.94
SUM PV LFCF 39,563.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.20
Free cash flow (t + 1) 11,949.20
Terminal Value 229,792.26
Present Value of Terminal Value 162,316.05

Intrinsic Value

Enterprise Value 201,879.27
Net Debt 7,834
Equity Value 194,045.27
Shares Outstanding 1,786
Equity Value Per Share 108.65