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 1,094.271,170.951,038.761,173.751,111.791,121.341,130.971,140.681,150.481,160.36
Revenue (%)
Operating Cash Flow 99.2872.0882.84101.7121.0475.7276.3777.0277.6878.35
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 29.85-18.8640.6272.69-17.2121.6921.8822.0722.2622.45

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 1,094.271,170.951,038.761,173.751,111.791,121.341,130.971,140.681,150.481,160.36
Operating Cash Flow 99.2872.0882.84101.7121.0475.7276.3777.0277.6878.35
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 29.85-18.8640.6272.69-17.2121.6921.8822.0722.2622.45
WACC
PV LFCF 20.2819.1318.0417.0116.04
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