Discounted Cash Flow (DCF) Analysis Levered

Amgen Inc. (AMGN)

$244.605

-0.57 (-0.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 409.97 | 244.605 | 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 23,74723,36225,42425,97926,32327,027.9427,751.7628,494.9629,258.0730,041.61
Revenue (%)
Operating Cash Flow 11,2969,15010,4979,2619,72110,843.6011,133.9911,432.1611,738.3212,052.68
Operating Cash Flow (%)
Capital Expenditure -738-618-608-880-936-815.58-837.42-859.85-882.87-906.52
Capital Expenditure (%)
Free Cash Flow 10,5588,5329,8898,3818,78510,028.0210,296.5710,572.3210,855.4511,146.16

Weighted Average Cost Of Capital

Share price $ 244.605
Beta 0.660
Diluted Shares Outstanding 541
Cost of Debt
Tax Rate 10.81
After-tax Cost of Debt 3.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.734
Total Debt 38,945
Total Equity 132,331.30
Total Capital 171,276.30
Debt Weighting 22.74
Equity Weighting 77.26
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 23,74723,36225,42425,97926,32327,027.9427,751.7628,494.9629,258.0730,041.61
Operating Cash Flow 11,2969,15010,4979,2619,72110,843.6011,133.9911,432.1611,738.3212,052.68
Capital Expenditure -738-618-608-880-936-815.58-837.42-859.85-882.87-906.52
Free Cash Flow 10,5588,5329,8898,3818,78510,028.0210,296.5710,572.3210,855.4511,146.16
WACC
PV LFCF 9,465.759,174.308,891.818,618.038,352.67
SUM PV LFCF 44,502.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.94
Free cash flow (t + 1) 11,369.09
Terminal Value 288,555.47
Present Value of Terminal Value 216,236.73

Intrinsic Value

Enterprise Value 260,739.29
Net Debt 38,945
Equity Value 221,794.29
Shares Outstanding 541
Equity Value Per Share 409.97