Discounted Cash Flow (DCF) Analysis Levered
CVS Health Corporation (CVS)
$94.52
+2.15 (+2.33%)
All numbers are in Millions, Currency in USD
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 | 184,765 | 194,579 | 256,776 | 268,706 | 292,111 | 329,087.04 | 370,743.58 | 417,673.09 | 470,543.05 | 530,105.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 8,007 | 8,865 | 12,848 | 15,865 | 18,265 | 17,145.55 | 19,315.87 | 21,760.91 | 24,515.45 | 27,618.67 |
| 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 | 6,089 | 6,828 | 10,391 | 13,428 | 15,745 | 13,978.78 | 15,748.25 | 17,741.69 | 19,987.47 | 22,517.53 |
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 | 184,765 | 194,579 | 256,776 | 268,706 | 292,111 | 329,087.04 | 370,743.58 | 417,673.09 | 470,543.05 | 530,105.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 8,007 | 8,865 | 12,848 | 15,865 | 18,265 | 17,145.55 | 19,315.87 | 21,760.91 | 24,515.45 | 27,618.67 |
| 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 | 6,089 | 6,828 | 10,391 | 13,428 | 15,745 | 13,978.78 | 15,748.25 | 17,741.69 | 19,987.47 | 22,517.53 |
| WACC | ||||||||||
| PV LFCF | 12,742.19 | 13,705.49 | 14,741.60 | 15,856.05 | 17,054.75 | |||||
| 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 |