Discounted Cash Flow (DCF) Analysis Levered
CVS Health Corporation (CVS)
$74.01
+0.51 (+0.69%)
All numbers are in Millions, Currency in USD
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 | 194,579 | 256,776 | 268,706 | 292,111 | 322,467 | 367,381.16 | 418,551.09 | 476,848.13 | 543,264.95 | 618,932.50 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 8,865 | 12,848 | 15,865 | 18,265 | 16,177 | 19,642.54 | 22,378.42 | 25,495.35 | 29,046.42 | 33,092.09 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,037 | -2,457 | -2,437 | -2,520 | -2,727 | -3,393.89 | -3,866.60 | -4,405.16 | -5,018.72 | -5,717.74 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 6,828 | 10,391 | 13,428 | 15,745 | 13,450 | 16,248.65 | 18,511.81 | 21,090.19 | 24,027.70 | 27,374.34 |
Weighted Average Cost Of Capital
| Share price | $ 74.01 |
|---|---|
| Beta | 0.529 |
| Diluted Shares Outstanding | 1,323 |
| Cost of Debt | |
| Tax Rate | 23.40 |
| After-tax Cost of Debt | 3.15% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.607 |
| Total Debt | 70,732 |
| Total Equity | 97,915.23 |
| Total Capital | 168,647.23 |
| Debt Weighting | 41.94 |
| Equity Weighting | 58.06 |
| 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 | 194,579 | 256,776 | 268,706 | 292,111 | 322,467 | 367,381.16 | 418,551.09 | 476,848.13 | 543,264.95 | 618,932.50 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 8,865 | 12,848 | 15,865 | 18,265 | 16,177 | 19,642.54 | 22,378.42 | 25,495.35 | 29,046.42 | 33,092.09 |
| Capital Expenditure | -2,037 | -2,457 | -2,437 | -2,520 | -2,727 | -3,393.89 | -3,866.60 | -4,405.16 | -5,018.72 | -5,717.74 |
| Free Cash Flow | 6,828 | 10,391 | 13,428 | 15,745 | 13,450 | 16,248.65 | 18,511.81 | 21,090.19 | 24,027.70 | 27,374.34 |
| WACC | ||||||||||
| PV LFCF | 14,693.19 | 15,918.32 | 17,245.60 | 18,683.54 | 20,241.39 | |||||
| SUM PV LFCF | 91,259.99 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.16 |
| Free cash flow (t + 1) | 27,921.83 |
| Terminal Value | 883,602.26 |
| Present Value of Terminal Value | 687,074.66 |
Intrinsic Value
| Enterprise Value | 778,334.65 |
|---|---|
| Net Debt | 57,787 |
| Equity Value | 720,547.65 |
| Shares Outstanding | 1,323 |
| Equity Value Per Share | 544.63 |