Discounted Cash Flow (DCF) Analysis Levered

Alkermes plc (ALKS)

$29.57

+0.66 (+2.28%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.65 | 29.57 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,170.951,038.761,173.751,111.791,098.561,085.481,072.551,059.781,047.171,034.70
Revenue (%)
Operating Cash Flow 72.0882.84101.7121.040.3653.6753.0352.4051.7851.16
Operating Cash Flow (%)
Capital Expenditure -90.94-42.22-29.02-38.25-48.73-48.15-47.58-47.01-46.45-45.90
Capital Expenditure (%)
Free Cash Flow -18.8640.6272.69-17.21-48.385.525.455.395.325.26

Weighted Average Cost Of Capital

Share price $ 29.57
Beta 0.520
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 6.739
Total Debt 293.27
Total Equity 4,835.91
Total Capital 5,129.18
Debt Weighting 5.72
Equity Weighting 94.28
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,170.951,038.761,173.751,111.791,098.561,085.481,072.551,059.781,047.171,034.70
Operating Cash Flow 72.0882.84101.7121.040.3653.6753.0352.4051.7851.16
Capital Expenditure -90.94-42.22-29.02-38.25-48.73-48.15-47.58-47.01-46.45-45.90
Free Cash Flow -18.8640.6272.69-17.21-48.385.525.455.395.325.26
WACC
PV LFCF -48.385.184.804.454.123.82
SUM PV LFCF 22.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.59
Free cash flow (t + 1) 5.36
Terminal Value 116.87
Present Value of Terminal Value 84.94

Intrinsic Value

Enterprise Value 107.31
Net Debt 0.80
Equity Value 106.51
Shares Outstanding 163.54
Equity Value Per Share 0.65