Discounted Cash Flow (DCF) Analysis Levered

HCA Healthcare, Inc. (HCA)

$254.58

-3.50 (-1.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 170.72 | 254.58 | overvalue

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 43,61446,67751,33651,53358,75263,363.5368,337.0273,700.9079,485.7985,724.74
Revenue (%)
Operating Cash Flow 5,4266,7617,6029,2328,9599,491.5410,236.5511,040.0311,906.5712,841.14
Operating Cash Flow (%)
Capital Expenditure -3,015-3,573-4,158-2,835-3,577-4,341.27-4,682.02-5,049.52-5,445.87-5,873.32
Capital Expenditure (%)
Free Cash Flow 2,4113,1883,4446,3975,3825,150.275,554.525,990.506,460.716,967.82

Weighted Average Cost Of Capital

Share price $ 254.58
Beta 1.646
Diluted Shares Outstanding 328.75
Cost of Debt
Tax Rate 29.26
After-tax Cost of Debt 3.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.389
Total Debt 36,726
Total Equity 83,693.68
Total Capital 120,419.68
Debt Weighting 30.50
Equity Weighting 69.50
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 43,61446,67751,33651,53358,75263,363.5368,337.0273,700.9079,485.7985,724.74
Operating Cash Flow 5,4266,7617,6029,2328,9599,491.5410,236.5511,040.0311,906.5712,841.14
Capital Expenditure -3,015-3,573-4,158-2,835-3,577-4,341.27-4,682.02-5,049.52-5,445.87-5,873.32
Free Cash Flow 2,4113,1883,4446,3975,3825,150.275,554.525,990.506,460.716,967.82
WACC
PV LFCF 3,099.833,071.893,044.213,016.772,989.58
SUM PV LFCF 23,239.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.83
Free cash flow (t + 1) 7,107.17
Terminal Value 104,058.18
Present Value of Terminal Value 68,160.55

Intrinsic Value

Enterprise Value 91,399.85
Net Debt 35,275
Equity Value 56,124.85
Shares Outstanding 328.75
Equity Value Per Share 170.72