Discounted Cash Flow (DCF) Analysis Levered

CVS Health Corporation (CVS)

$74.01

+0.51 (+0.69%)
All numbers are in Millions, Currency in USD
Stock DCF: 544.63 | 74.01 | 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 $ 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 194,579256,776268,706292,111322,467367,381.16418,551.09476,848.13543,264.95618,932.50
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 14,693.1915,918.3217,245.6018,683.5420,241.39
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