Discounted Cash Flow (DCF) Analysis Levered
Baxter International Inc. (BAX)
$73.37
+0.14 (+0.19%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 10,561 | 11,127 | 11,362 | 11,673 | 12,784 | 13,414.45 | 14,075.99 | 14,770.15 | 15,498.55 | 16,262.87 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,837 | 2,096 | 2,104 | 1,868 | 2,222 | 2,364.51 | 2,481.12 | 2,603.47 | 2,731.87 | 2,866.59 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -634 | -681 | -696 | -709 | -743 | -808.49 | -848.36 | -890.20 | -934.10 | -980.16 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,203 | 1,415 | 1,408 | 1,159 | 1,479 | 1,556.02 | 1,632.76 | 1,713.28 | 1,797.77 | 1,886.43 |
Weighted Average Cost Of Capital
Share price | $ 73.37 |
---|---|
Beta | 0.596 |
Diluted Shares Outstanding | 517 |
Cost of Debt | |
Tax Rate | 13.07 |
After-tax Cost of Debt | 0.98% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 5.670 |
Total Debt | 18,310 |
Total Equity | 37,932.29 |
Total Capital | 56,242.29 |
Debt Weighting | 32.56 |
Equity Weighting | 67.44 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 10,561 | 11,127 | 11,362 | 11,673 | 12,784 | 13,414.45 | 14,075.99 | 14,770.15 | 15,498.55 | 16,262.87 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,837 | 2,096 | 2,104 | 1,868 | 2,222 | 2,364.51 | 2,481.12 | 2,603.47 | 2,731.87 | 2,866.59 |
Capital Expenditure | -634 | -681 | -696 | -709 | -743 | -808.49 | -848.36 | -890.20 | -934.10 | -980.16 |
Free Cash Flow | 1,203 | 1,415 | 1,408 | 1,159 | 1,479 | 1,556.02 | 1,632.76 | 1,713.28 | 1,797.77 | 1,886.43 |
WACC | ||||||||||
PV LFCF | 1,494.16 | 1,505.52 | 1,516.96 | 1,528.49 | 1,540.11 | |||||
SUM PV LFCF | 7,585.26 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 4.14 |
Free cash flow (t + 1) | 1,924.16 |
Terminal Value | 89,913.87 |
Present Value of Terminal Value | 73,407.23 |
Intrinsic Value
Enterprise Value | 80,992.49 |
---|---|
Net Debt | 15,359 |
Equity Value | 65,633.49 |
Shares Outstanding | 517 |
Equity Value Per Share | 126.95 |