Discounted Cash Flow (DCF) Analysis Levered

Abbott Laboratories (ABT)

$113.24

+0.80 (+0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 159.49 | 113.24 | 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 27,39030,57831,90434,60843,07548,342.7154,254.6160,889.4968,335.7576,692.64
Revenue (%)
Operating Cash Flow 5,5706,3006,1367,90110,53310,389.2611,659.7813,085.6814,685.9416,481.91
Operating Cash Flow (%)
Capital Expenditure -1,135-1,394-1,638-2,177-1,885-2,369.12-2,658.84-2,984-3,348.91-3,758.46
Capital Expenditure (%)
Free Cash Flow 4,4354,9064,4985,7248,6488,020.159,000.9410,101.6811,337.0312,723.45

Weighted Average Cost Of Capital

Share price $ 113.24
Beta 0.723
Diluted Shares Outstanding 1,786
Cost of Debt
Tax Rate 13.88
After-tax Cost of Debt 2.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.201
Total Debt 19,006
Total Equity 202,246.64
Total Capital 221,252.64
Debt Weighting 8.59
Equity Weighting 91.41
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 27,39030,57831,90434,60843,07548,342.7154,254.6160,889.4968,335.7576,692.64
Operating Cash Flow 5,5706,3006,1367,90110,53310,389.2611,659.7813,085.6814,685.9416,481.91
Capital Expenditure -1,135-1,394-1,638-2,177-1,885-2,369.12-2,658.84-2,984-3,348.91-3,758.46
Free Cash Flow 4,4354,9064,4985,7248,6488,020.159,000.9410,101.6811,337.0312,723.45
WACC
PV LFCF 5,692.446,033.796,395.616,779.137,185.64
SUM PV LFCF 42,696.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.88
Free cash flow (t + 1) 12,977.92
Terminal Value 334,482.52
Present Value of Terminal Value 251,364.40

Intrinsic Value

Enterprise Value 294,061.03
Net Debt 9,207
Equity Value 284,854.03
Shares Outstanding 1,786
Equity Value Per Share 159.49