Discounted Cash Flow (DCF) Analysis Levered

CVS Health Corporation (CVS)

$94.52

+2.15 (+2.33%)
All numbers are in Millions, Currency in USD
Stock DCF: 501.32 | 94.52 | 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 184,765194,579256,776268,706292,111329,087.04370,743.58417,673.09470,543.05530,105.39
Revenue (%)
Operating Cash Flow 8,0078,86512,84815,86518,26517,145.5519,315.8721,760.9124,515.4527,618.67
Operating Cash Flow (%)
Capital Expenditure -1,918-2,037-2,457-2,437-2,520-3,166.77-3,567.62-4,019.22-4,527.98-5,101.14
Capital Expenditure (%)
Free Cash Flow 6,0896,82810,39113,42815,74513,978.7815,748.2517,741.6919,987.4722,517.53

Weighted Average Cost Of Capital

Share price $ 94.52
Beta 0.772
Diluted Shares Outstanding 1,314
Cost of Debt
Tax Rate 24.20
After-tax Cost of Debt 2.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.770
Total Debt 93,263
Total Equity 124,199.28
Total Capital 217,462.28
Debt Weighting 42.89
Equity Weighting 57.11
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 184,765194,579256,776268,706292,111329,087.04370,743.58417,673.09470,543.05530,105.39
Operating Cash Flow 8,0078,86512,84815,86518,26517,145.5519,315.8721,760.9124,515.4527,618.67
Capital Expenditure -1,918-2,037-2,457-2,437-2,520-3,166.77-3,567.62-4,019.22-4,527.98-5,101.14
Free Cash Flow 6,0896,82810,39113,42815,74513,978.7815,748.2517,741.6919,987.4722,517.53
WACC
PV LFCF 12,742.1913,705.4914,741.6015,856.0517,054.75
SUM PV LFCF 77,612.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.74
Free cash flow (t + 1) 22,967.88
Terminal Value 838,243.84
Present Value of Terminal Value 664,978.37

Intrinsic Value

Enterprise Value 742,590.80
Net Debt 83,855
Equity Value 658,735.80
Shares Outstanding 1,314
Equity Value Per Share 501.32