Discounted Cash Flow (DCF) Analysis Levered

Becton, Dickinson and Company (BDX)

$251.8

+5.27 (+2.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 488.33 | 251.8 | 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 12,09315,98317,29017,11720,24823,165.5326,503.4630,322.3434,691.4839,690.18
Revenue (%)
Operating Cash Flow 2,5502,8653,3283,5394,6474,720.485,400.656,178.837,069.148,087.73
Operating Cash Flow (%)
Capital Expenditure -727-895-957-810-1,231-1,295.33-1,481.98-1,695.52-1,939.82-2,219.33
Capital Expenditure (%)
Free Cash Flow 1,8231,9702,3712,7293,4163,425.143,918.674,483.315,129.315,868.40

Weighted Average Cost Of Capital

Share price $ 251.8
Beta 0.661
Diluted Shares Outstanding 292.09
Cost of Debt
Tax Rate 6.69
After-tax Cost of Debt 2.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.007
Total Debt 17,610
Total Equity 73,548.01
Total Capital 91,158.01
Debt Weighting 19.32
Equity Weighting 80.68
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 12,09315,98317,29017,11720,24823,165.5326,503.4630,322.3434,691.4839,690.18
Operating Cash Flow 2,5502,8653,3283,5394,6474,720.485,400.656,178.837,069.148,087.73
Capital Expenditure -727-895-957-810-1,231-1,295.33-1,481.98-1,695.52-1,939.82-2,219.33
Free Cash Flow 1,8231,9702,3712,7293,4163,425.143,918.674,483.315,129.315,868.40
WACC
PV LFCF 3,251.823,532.113,836.574,167.264,526.46
SUM PV LFCF 19,314.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.33
Free cash flow (t + 1) 5,985.76
Terminal Value 179,752.70
Present Value of Terminal Value 138,648.44

Intrinsic Value

Enterprise Value 157,962.68
Net Debt 15,327
Equity Value 142,635.68
Shares Outstanding 292.09
Equity Value Per Share 488.33