Discounted Cash Flow (DCF) Analysis Levered
Abbott Laboratories (ABT)
$113.24
+0.80 (+0.71%)
All numbers are in Millions, Currency in USD
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 | 27,390 | 30,578 | 31,904 | 34,608 | 43,075 | 48,342.71 | 54,254.61 | 60,889.49 | 68,335.75 | 76,692.64 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,570 | 6,300 | 6,136 | 7,901 | 10,533 | 10,389.26 | 11,659.78 | 13,085.68 | 14,685.94 | 16,481.91 |
| 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 | 4,435 | 4,906 | 4,498 | 5,724 | 8,648 | 8,020.15 | 9,000.94 | 10,101.68 | 11,337.03 | 12,723.45 |
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 | 27,390 | 30,578 | 31,904 | 34,608 | 43,075 | 48,342.71 | 54,254.61 | 60,889.49 | 68,335.75 | 76,692.64 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,570 | 6,300 | 6,136 | 7,901 | 10,533 | 10,389.26 | 11,659.78 | 13,085.68 | 14,685.94 | 16,481.91 |
| 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 | 4,435 | 4,906 | 4,498 | 5,724 | 8,648 | 8,020.15 | 9,000.94 | 10,101.68 | 11,337.03 | 12,723.45 |
| WACC | ||||||||||
| PV LFCF | 5,692.44 | 6,033.79 | 6,395.61 | 6,779.13 | 7,185.64 | |||||
| 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 |