Discounted Cash Flow (DCF) Analysis Levered

Baxter International Inc. (BAX)

$73.37

+0.14 (+0.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 126.95 | 73.37 | undervalue

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 10,56111,12711,36211,67312,78413,414.4514,075.9914,770.1515,498.5516,262.87
Revenue (%)
Operating Cash Flow 1,8372,0962,1041,8682,2222,364.512,481.122,603.472,731.872,866.59
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 1,2031,4151,4081,1591,4791,556.021,632.761,713.281,797.771,886.43

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 10,56111,12711,36211,67312,78413,414.4514,075.9914,770.1515,498.5516,262.87
Operating Cash Flow 1,8372,0962,1041,8682,2222,364.512,481.122,603.472,731.872,866.59
Capital Expenditure -634-681-696-709-743-808.49-848.36-890.20-934.10-980.16
Free Cash Flow 1,2031,4151,4081,1591,4791,556.021,632.761,713.281,797.771,886.43
WACC
PV LFCF 1,494.161,505.521,516.961,528.491,540.11
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