Discounted Cash Flow (DCF) Analysis Levered

Boston Scientific Corporation (BSX)

$47.9

-0.60 (-1.24%)

All numbers are in Millions, Currency in USD

Stock DCF: 15.60 | 47.9 | overvalue

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	9,048	9,823	10,735	9,913	11,888	12,783.04	13,745.48	14,780.37	15,893.18	17,089.77
Revenue (%)
Operating Cash Flow	1,426	310	1,836	1,508	1,870	1,711.95	1,840.84	1,979.44	2,128.47	2,288.72
Operating Cash Flow (%)
Capital Expenditure	-319	-316	-461	-376	-554	-498.29	-535.80	-576.14	-619.52	-666.16
Capital Expenditure (%)
Free Cash Flow	1,107	-6	1,375	1,132	1,316	1,213.66	1,305.04	1,403.29	1,508.95	1,622.56

Weighted Average Cost Of Capital

Share price	$ 47.9
Beta	0.807
Diluted Shares Outstanding	1,416.70
Cost of Debt
Tax Rate	3.25
After-tax Cost of Debt	3.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.429
Total Debt	9,451
Total Equity	67,859.93
Total Capital	77,310.93
Debt Weighting	12.22
Equity Weighting	87.78
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	9,048	9,823	10,735	9,913	11,888	12,783.04	13,745.48	14,780.37	15,893.18	17,089.77
Operating Cash Flow	1,426	310	1,836	1,508	1,870	1,711.95	1,840.84	1,979.44	2,128.47	2,288.72
Capital Expenditure	-319	-316	-461	-376	-554	-498.29	-535.80	-576.14	-619.52	-666.16
Free Cash Flow	1,107	-6	1,375	1,132	1,316	1,213.66	1,305.04	1,403.29	1,508.95	1,622.56
WACC
PV LFCF						810.99	815.38	819.79	824.23	828.69
SUM PV LFCF										5,735.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.95
Free cash flow (t + 1)	1,655.01
Terminal Value	33,434.50
Present Value of Terminal Value	23,894.11

Intrinsic Value

Enterprise Value	29,629.85
Net Debt	7,526
Equity Value	22,103.85
Shares Outstanding	1,416.70
Equity Value Per Share	15.60