Discounted Cash Flow (DCF) Analysis Levered

Becton, Dickinson and Company (BDX)

$258.53

-4.21 (-1.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 175.46 | 258.53 | overvalue

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 15,98317,29017,11720,24818,87019,750.4320,671.9321,636.4322,645.9423,702.54
Revenue (%)
Operating Cash Flow 2,8653,3303,5394,6472,6333,743.263,917.914,100.724,292.044,492.30
Operating Cash Flow (%)
Capital Expenditure -895-957-810-1,231-973-1,070.58-1,120.53-1,172.81-1,227.54-1,284.81
Capital Expenditure (%)
Free Cash Flow 1,9702,3732,7293,4161,6602,672.682,797.382,927.903,064.513,207.49

Weighted Average Cost Of Capital

Share price $ 258.53
Beta 0.587
Diluted Shares Outstanding 287.36
Cost of Debt
Tax Rate 0.22
After-tax Cost of Debt 2.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.346
Total Debt 16,065
Total Equity 74,292.21
Total Capital 90,357.21
Debt Weighting 17.78
Equity Weighting 82.22
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 15,98317,29017,11720,24818,87019,750.4320,671.9321,636.4322,645.9423,702.54
Operating Cash Flow 2,8653,3303,5394,6472,6333,743.263,917.914,100.724,292.044,492.30
Capital Expenditure -895-957-810-1,231-973-1,070.58-1,120.53-1,172.81-1,227.54-1,284.81
Free Cash Flow 1,9702,3732,7293,4161,6602,672.682,797.382,927.903,064.513,207.49
WACC
PV LFCF 2,510.032,467.262,425.232,383.902,343.29
SUM PV LFCF 12,129.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.48
Free cash flow (t + 1) 3,271.64
Terminal Value 73,027.70
Present Value of Terminal Value 53,351.60

Intrinsic Value

Enterprise Value 65,481.31
Net Debt 15,059
Equity Value 50,422.31
Shares Outstanding 287.36
Equity Value Per Share 175.46