Discounted Cash Flow (DCF) Analysis Levered

Abbott Laboratories (ABT)

$101.69

+0.91 (+0.90%)
All numbers are in Millions, Currency in USD
Stock DCF: 132.30 | 101.69 | 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 $ 101.69
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 6.874
Total Debt 24,295
Total Equity 181,618.34
Total Capital 205,913.34
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 30,57831,90434,60843,07543,65347,867.6152,489.1257,556.8463,113.8369,207.34
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 7,182.867,415.837,656.357,904.678,161.05
SUM PV LFCF 40,700.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.21
Free cash flow (t + 1) 11,949.20
Terminal Value 283,828.92
Present Value of Terminal Value 210,004.98

Intrinsic Value

Enterprise Value 250,705.46
Net Debt 14,413
Equity Value 236,292.46
Shares Outstanding 1,786
Equity Value Per Share 132.30