Discounted Cash Flow (DCF) Analysis Levered

Baxter International Inc. (BAX)

$41.97

+0.63 (+1.52%)
All numbers are in Millions, Currency in USD
Stock DCF: 157.01 | 41.97 | undervalue

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 11,12711,36211,67312,78415,11316,344.1417,675.5719,115.4720,672.6622,356.70
Revenue (%)
Operating Cash Flow 2,0962,1041,8682,2222,672.692,890.413,125.873,380.513,655.903,953.71
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 1,4151,4081,1591,4791,993.691,954.722,113.962,286.172,472.412,673.81

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 11,12711,36211,67312,78415,11316,344.1417,675.5719,115.4720,672.6622,356.70
Operating Cash Flow 2,0962,1041,8682,2222,672.692,890.413,125.873,380.513,655.903,953.71
Capital Expenditure -681-696-709-743-679-935.69-1,011.91-1,094.34-1,183.49-1,279.90
Free Cash Flow 1,4151,4081,1591,4791,993.691,954.722,113.962,286.172,472.412,673.81
WACC
PV LFCF 1,869.121,932.861,998.772,066.932,137.41
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