Discounted Cash Flow (DCF) Analysis Levered
Arrowhead Pharmaceuticals, Inc. (ARWR)
$24.53
+0.74 (+3.11%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 168.80 | 87.99 | 138.29 | 243.23 | 240.73 | 291.38 | 352.68 | 426.87 | 516.68 | 625.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 173.03 | -95.39 | 171.22 | -136.13 | -153.89 | -1.15 | -1.39 | -1.68 | -2.04 | -2.47 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -12 | -11.95 | -23.57 | -52.78 | -176.74 | -77.42 | -93.71 | -113.42 | -137.28 | -166.16 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 161.03 | -107.34 | 147.66 | -188.91 | -330.63 | -78.57 | -95.10 | -115.10 | -139.32 | -168.63 |
Weighted Average Cost Of Capital
| Share price | $ 24.53 |
|---|---|
| Beta | 0.774 |
| Diluted Shares Outstanding | 106.75 |
| Cost of Debt | |
| Tax Rate | 0.59 |
| After-tax Cost of Debt | 15.82% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.763 |
| Total Debt | 115.17 |
| Total Equity | 2,618.58 |
| Total Capital | 2,733.75 |
| Debt Weighting | 4.21 |
| Equity Weighting | 95.79 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 168.80 | 87.99 | 138.29 | 243.23 | 240.73 | 291.38 | 352.68 | 426.87 | 516.68 | 625.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 173.03 | -95.39 | 171.22 | -136.13 | -153.89 | -1.15 | -1.39 | -1.68 | -2.04 | -2.47 |
| Capital Expenditure | -12 | -11.95 | -23.57 | -52.78 | -176.74 | -77.42 | -93.71 | -113.42 | -137.28 | -166.16 |
| Free Cash Flow | 161.03 | -107.34 | 147.66 | -188.91 | -330.63 | -78.57 | -95.10 | -115.10 | -139.32 | -168.63 |
| WACC | ||||||||||
| PV LFCF | -49.24 | -55.13 | -61.73 | -69.12 | -77.39 | |||||
| SUM PV LFCF | -461.44 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.10 |
| Free cash flow (t + 1) | -172 |
| Terminal Value | -2,819.67 |
| Present Value of Terminal Value | -1,910.16 |
Intrinsic Value
| Enterprise Value | -2,371.60 |
|---|---|
| Net Debt | 4.28 |
| Equity Value | -2,375.88 |
| Shares Outstanding | 106.75 |
| Equity Value Per Share | -22.26 |