Discounted Cash Flow (DCF) Analysis Levered

CVS Health Corporation (CVS)

$70.03

+0.25 (+0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 515.53 | 70.03 | undervalue

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 194,579256,776268,706292,111322,467367,381.16418,551.09476,848.13543,264.95618,932.50
Revenue (%)
Operating Cash Flow 8,86512,84815,86518,26516,17719,642.5422,378.4225,495.3529,046.4233,092.09
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 6,82810,39113,42815,74513,45016,248.6518,511.8121,090.1924,027.7027,374.34

Weighted Average Cost Of Capital

Share price $ 70.03
Beta 0.612
Diluted Shares Outstanding 1,323
Cost of Debt
Tax Rate 23.40
After-tax Cost of Debt 2.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.486
Total Debt 70,732
Total Equity 92,649.69
Total Capital 163,381.69
Debt Weighting 43.29
Equity Weighting 56.71
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 194,579256,776268,706292,111322,467367,381.16418,551.09476,848.13543,264.95618,932.50
Operating Cash Flow 8,86512,84815,86518,26516,17719,642.5422,378.4225,495.3529,046.4233,092.09
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 6,82810,39113,42815,74513,45016,248.6518,511.8121,090.1924,027.7027,374.34
WACC
PV LFCF 15,427.8916,688.8818,052.9419,528.4921,124.65
SUM PV LFCF 90,822.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.32
Free cash flow (t + 1) 27,921.83
Terminal Value 841,019.02
Present Value of Terminal Value 649,010.26

Intrinsic Value

Enterprise Value 739,833.11
Net Debt 57,787
Equity Value 682,046.11
Shares Outstanding 1,323
Equity Value Per Share 515.53