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	10,561	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