Discounted Cash Flow (DCF) Analysis Levered
GlaxoSmithKline plc (GSK)
$43.695
-1.01 (-2.27%)
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 | 30,186 | 30,821 | 33,754 | 34,099 | 34,114 | 35,195.92 | 36,312.16 | 37,463.79 | 38,651.95 | 39,877.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,918 | 8,421 | 8,020 | 8,441 | 7,952 | 8,592.37 | 8,864.87 | 9,146.02 | 9,436.09 | 9,735.35 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,202 | -1,796 | -2,163 | -2,239 | -2,931 | -2,441.76 | -2,519.20 | -2,599.09 | -2,681.52 | -2,766.57 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 4,716 | 6,625 | 5,857 | 6,202 | 5,021 | 6,150.61 | 6,345.68 | 6,546.93 | 6,754.56 | 6,968.78 |
Weighted Average Cost Of Capital
| Share price | $ 43.695 |
|---|---|
| Beta | 0.368 |
| Diluted Shares Outstanding | 2,532.50 |
| Cost of Debt | |
| Tax Rate | 19.42 |
| After-tax Cost of Debt | 2.61% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.624 |
| Total Debt | 24,173 |
| Total Equity | 110,657.59 |
| Total Capital | 134,830.59 |
| Debt Weighting | 17.93 |
| Equity Weighting | 82.07 |
| 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 | 30,186 | 30,821 | 33,754 | 34,099 | 34,114 | 35,195.92 | 36,312.16 | 37,463.79 | 38,651.95 | 39,877.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,918 | 8,421 | 8,020 | 8,441 | 7,952 | 8,592.37 | 8,864.87 | 9,146.02 | 9,436.09 | 9,735.35 |
| Capital Expenditure | -2,202 | -1,796 | -2,163 | -2,239 | -2,931 | -2,441.76 | -2,519.20 | -2,599.09 | -2,681.52 | -2,766.57 |
| Free Cash Flow | 4,716 | 6,625 | 5,857 | 6,202 | 5,021 | 6,150.61 | 6,345.68 | 6,546.93 | 6,754.56 | 6,968.78 |
| WACC | ||||||||||
| PV LFCF | 4,788.64 | 4,738.64 | 4,689.17 | 4,640.21 | 4,591.77 | |||||
| SUM PV LFCF | 28,886.99 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.26 |
| Free cash flow (t + 1) | 7,108.16 |
| Terminal Value | 314,520.34 |
| Present Value of Terminal Value | 255,305.48 |
Intrinsic Value
| Enterprise Value | 284,192.47 |
|---|---|
| Net Debt | 19,899 |
| Equity Value | 264,293.47 |
| Shares Outstanding | 2,532.50 |
| Equity Value Per Share | 104.36 |