Discounted Cash Flow (DCF) Analysis Levered

Alkermes plc (ALKS)

$23.79

+0.24 (+1.02%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.57 | 23.79 | overvalue

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	1,094.27	1,170.95	1,038.76	1,173.75	1,111.79	1,121.34	1,130.97	1,140.68	1,150.48	1,160.36
Revenue (%)
Operating Cash Flow	99.28	72.08	82.84	101.71	21.04	75.72	76.37	77.02	77.68	78.35
Operating Cash Flow (%)
Capital Expenditure	-69.43	-90.94	-42.22	-29.02	-38.25	-54.02	-54.49	-54.96	-55.43	-55.90
Capital Expenditure (%)
Free Cash Flow	29.85	-18.86	40.62	72.69	-17.21	21.69	21.88	22.07	22.26	22.45

Weighted Average Cost Of Capital

Share price	$ 23.79
Beta	0.623
Diluted Shares Outstanding	163.54
Cost of Debt
Tax Rate	5.40
After-tax Cost of Debt	4.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.160
Total Debt	293.27
Total Equity	3,890.64
Total Capital	4,183.91
Debt Weighting	7.01
Equity Weighting	92.99
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	1,094.27	1,170.95	1,038.76	1,173.75	1,111.79	1,121.34	1,130.97	1,140.68	1,150.48	1,160.36
Operating Cash Flow	99.28	72.08	82.84	101.71	21.04	75.72	76.37	77.02	77.68	78.35
Capital Expenditure	-69.43	-90.94	-42.22	-29.02	-38.25	-54.02	-54.49	-54.96	-55.43	-55.90
Free Cash Flow	29.85	-18.86	40.62	72.69	-17.21	21.69	21.88	22.07	22.26	22.45
WACC
PV LFCF						20.28	19.13	18.04	17.01	16.04
SUM PV LFCF										90.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.95
Free cash flow (t + 1)	22.90
Terminal Value	462.56
Present Value of Terminal Value	330.57

Intrinsic Value

Enterprise Value	421.08
Net Debt	0.80
Equity Value	420.28
Shares Outstanding	163.54
Equity Value Per Share	2.57