Discounted Cash Flow (DCF) Analysis Levered

Gilead Sciences, Inc. (GILD)

$85.715

-0.34 (-0.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 246.52 | 85.715 | 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 22,12722,44924,68927,30527,28128,777.4530,355.9932,021.1233,777.5835,630.40
Revenue (%)
Operating Cash Flow 8,4009,1448,16811,3849,07210,746.9111,336.4111,958.2512,614.2013,306.13
Operating Cash Flow (%)
Capital Expenditure -924-825-650-579-859.63-906.79-956.53-1,009-1,064.34-1,122.73
Capital Expenditure (%)
Free Cash Flow 7,4768,3197,51810,8058,212.379,840.1210,379.8910,949.2611,549.8612,183.41

Weighted Average Cost Of Capital

Share price $ 85.715
Beta 0.411
Diluted Shares Outstanding 1,262
Cost of Debt
Tax Rate 21.02
After-tax Cost of Debt 3.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.579
Total Debt -
Total Equity 108,172.33
Total Capital 108,172.33
Debt Weighting 0.00
Equity Weighting 100.00
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 22,12722,44924,68927,30527,28128,777.4530,355.9932,021.1233,777.5835,630.40
Operating Cash Flow 8,4009,1448,16811,3849,07210,746.9111,336.4111,958.2512,614.2013,306.13
Capital Expenditure -924-825-650-579-859.63-906.79-956.53-1,009-1,064.34-1,122.73
Free Cash Flow 7,4768,3197,51810,8058,212.379,840.1210,379.8910,949.2611,549.8612,183.41
WACC
PV LFCF 9,320.069,311.719,303.369,295.019,286.68
SUM PV LFCF 46,516.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.58
Free cash flow (t + 1) 12,427.08
Terminal Value 347,125.02
Present Value of Terminal Value 264,592.56

Intrinsic Value

Enterprise Value 311,109.38
Net Debt -
Equity Value 311,109.38
Shares Outstanding 1,262
Equity Value Per Share 246.52