Discounted Cash Flow (DCF) Analysis Levered

GlaxoSmithKline plc (GSK)

$43.695

-1.01 (-2.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 104.36 | 43.695 | undervalue

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 30,18630,82133,75434,09934,11435,195.9236,312.1637,463.7938,651.9539,877.79
Revenue (%)
Operating Cash Flow 6,9188,4218,0208,4417,9528,592.378,864.879,146.029,436.099,735.35
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 4,7166,6255,8576,2025,0216,150.616,345.686,546.936,754.566,968.78

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 30,18630,82133,75434,09934,11435,195.9236,312.1637,463.7938,651.9539,877.79
Operating Cash Flow 6,9188,4218,0208,4417,9528,592.378,864.879,146.029,436.099,735.35
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 4,7166,6255,8576,2025,0216,150.616,345.686,546.936,754.566,968.78
WACC
PV LFCF 4,788.644,738.644,689.174,640.214,591.77
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