Discounted Cash Flow (DCF) Analysis Levered
HUTCHMED (China) Limited (HCM)
$13.39
+1.18 (+9.66%)
All numbers are in Millions, Currency in USD
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 | 214.11 | 204.89 | 227.98 | 356.13 | 426.41 | 514.79 | 621.50 | 750.31 | 905.84 | 1,093.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -32.85 | -80.91 | -62.07 | -204.22 | -268.60 | -208.38 | -251.57 | -303.72 | -366.67 | -442.67 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -6.36 | -8.57 | -19.58 | -16.76 | -36.66 | -29.90 | -36.10 | -43.59 | -52.62 | -63.53 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -39.21 | -89.48 | -81.65 | -220.98 | -305.26 | -238.28 | -287.67 | -347.30 | -419.29 | -506.20 |
Weighted Average Cost Of Capital
| Share price | $ 13.39 |
|---|---|
| Beta | 0.843 |
| Diluted Shares Outstanding | 169.43 |
| Cost of Debt | |
| Tax Rate | 12.08 |
| After-tax Cost of Debt | 2.46% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.789 |
| Total Debt | 23.30 |
| Total Equity | 2,268.65 |
| Total Capital | 2,291.95 |
| Debt Weighting | 1.02 |
| Equity Weighting | 98.98 |
| 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 | 214.11 | 204.89 | 227.98 | 356.13 | 426.41 | 514.79 | 621.50 | 750.31 | 905.84 | 1,093.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -32.85 | -80.91 | -62.07 | -204.22 | -268.60 | -208.38 | -251.57 | -303.72 | -366.67 | -442.67 |
| Capital Expenditure | -6.36 | -8.57 | -19.58 | -16.76 | -36.66 | -29.90 | -36.10 | -43.59 | -52.62 | -63.53 |
| Free Cash Flow | -39.21 | -89.48 | -81.65 | -220.98 | -305.26 | -238.28 | -287.67 | -347.30 | -419.29 | -506.20 |
| WACC | ||||||||||
| PV LFCF | -164.21 | -184.03 | -206.23 | -231.11 | -258.99 | |||||
| SUM PV LFCF | -1,406.97 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.73 |
| Free cash flow (t + 1) | -516.32 |
| Terminal Value | -9,010.82 |
| Present Value of Terminal Value | -6,209.85 |
Intrinsic Value
| Enterprise Value | -7,616.82 |
|---|---|
| Net Debt | -289.98 |
| Equity Value | -7,326.84 |
| Shares Outstanding | 169.43 |
| Equity Value Per Share | -43.24 |