Discounted Cash Flow (DCF) Analysis Levered
Baxter International Inc. (BAX)
$41.97
+0.63 (+1.52%)
All numbers are in Millions, Currency in USD
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 | 11,127 | 11,362 | 11,673 | 12,784 | 15,113 | 16,344.14 | 17,675.57 | 19,115.47 | 20,672.66 | 22,356.70 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,096 | 2,104 | 1,868 | 2,222 | 2,672.69 | 2,890.41 | 3,125.87 | 3,380.51 | 3,655.90 | 3,953.71 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -681 | -696 | -709 | -743 | -679 | -935.69 | -1,011.91 | -1,094.34 | -1,183.49 | -1,279.90 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,415 | 1,408 | 1,159 | 1,479 | 1,993.69 | 1,954.72 | 2,113.96 | 2,286.17 | 2,472.41 | 2,673.81 |
Weighted Average Cost Of Capital
| Share price | $ 41.97 |
|---|---|
| Beta | 0.565 |
| Diluted Shares Outstanding | 504 |
| Cost of Debt | |
| Tax Rate | -3.40 |
| After-tax Cost of Debt | 2.31% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.411 |
| Total Debt | 17,092 |
| Total Equity | 21,152.88 |
| Total Capital | 38,244.88 |
| Debt Weighting | 44.69 |
| Equity Weighting | 55.31 |
| 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 | 11,127 | 11,362 | 11,673 | 12,784 | 15,113 | 16,344.14 | 17,675.57 | 19,115.47 | 20,672.66 | 22,356.70 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,096 | 2,104 | 1,868 | 2,222 | 2,672.69 | 2,890.41 | 3,125.87 | 3,380.51 | 3,655.90 | 3,953.71 |
| Capital Expenditure | -681 | -696 | -709 | -743 | -679 | -935.69 | -1,011.91 | -1,094.34 | -1,183.49 | -1,279.90 |
| Free Cash Flow | 1,415 | 1,408 | 1,159 | 1,479 | 1,993.69 | 1,954.72 | 2,113.96 | 2,286.17 | 2,472.41 | 2,673.81 |
| WACC | ||||||||||
| PV LFCF | 1,869.12 | 1,932.86 | 1,998.77 | 2,066.93 | 2,137.41 | |||||
| SUM PV LFCF | 10,005.08 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.58 |
| Free cash flow (t + 1) | 2,727.29 |
| Terminal Value | 105,708.89 |
| Present Value of Terminal Value | 84,502.26 |
Intrinsic Value
| Enterprise Value | 94,507.34 |
|---|---|
| Net Debt | 15,374 |
| Equity Value | 79,133.34 |
| Shares Outstanding | 504 |
| Equity Value Per Share | 157.01 |