Discounted Cash Flow (DCF) Analysis Levered

GSK plc (GSK)

$34.655

-0.07 (-0.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 70.95 | 34.655 | 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 30,82133,75434,09934,11429,32429,070.4328,819.0628,569.8628,322.8128,077.90
Revenue (%)
Operating Cash Flow 8,4218,0208,4417,9527,4037,232.287,169.757,107.757,046.296,985.36
Operating Cash Flow (%)
Capital Expenditure -1,796-2,163-2,239-2,931-2,258-2,040.36-2,022.72-2,005.23-1,987.89-1,970.70
Capital Expenditure (%)
Free Cash Flow 6,6255,8576,2025,0215,1455,191.925,147.025,102.525,058.405,014.66

Weighted Average Cost Of Capital

Share price $ 34.655
Beta 0.282
Diluted Shares Outstanding 2,042
Cost of Debt
Tax Rate -165.74
After-tax Cost of Debt 4.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.090
Total Debt 20,987
Total Equity 70,765.51
Total Capital 91,752.51
Debt Weighting 22.87
Equity Weighting 77.13
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 30,82133,75434,09934,11429,32429,070.4328,819.0628,569.8628,322.8128,077.90
Operating Cash Flow 8,4218,0208,4417,9527,4037,232.287,169.757,107.757,046.296,985.36
Capital Expenditure -1,796-2,163-2,239-2,931-2,258-2,040.36-2,022.72-2,005.23-1,987.89-1,970.70
Free Cash Flow 6,6255,8576,2025,0215,1455,191.925,147.025,102.525,058.405,014.66
WACC
PV LFCF 4,950.344,679.194,422.894,180.633,951.64
SUM PV LFCF 22,184.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.88
Free cash flow (t + 1) 5,114.95
Terminal Value 177,602.39
Present Value of Terminal Value 139,954.03

Intrinsic Value

Enterprise Value 162,138.74
Net Debt 17,264
Equity Value 144,874.74
Shares Outstanding 2,042
Equity Value Per Share 70.95