Discounted Cash Flow (DCF) Analysis Levered

Henry Schein, Inc. (HSIC)

$77.11

+0.37 (+0.48%)

All numbers are in Millions, Currency in USD

Stock DCF: 102.68 | 77.11 | 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	12,461.54	13,202	9,985.80	10,119.14	12,401.02	12,570.48	12,742.25	12,916.37	13,092.87	13,271.78
Revenue (%)
Operating Cash Flow	545.52	684.71	654.09	598.91	709.58	697.78	707.31	716.98	726.78	736.71
Operating Cash Flow (%)
Capital Expenditure	-81.50	-90.64	-76.22	-48.83	-79.01	-81.04	-82.15	-83.27	-84.41	-85.56
Capital Expenditure (%)
Free Cash Flow	464.01	594.07	577.87	550.08	630.57	616.74	625.16	633.71	642.37	651.14

Weighted Average Cost Of Capital

Share price	$ 77.11
Beta	0.713
Diluted Shares Outstanding	143.40
Cost of Debt
Tax Rate	24.00
After-tax Cost of Debt	1.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.256
Total Debt	1,216.68
Total Equity	11,057.88
Total Capital	12,274.56
Debt Weighting	9.91
Equity Weighting	90.09
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	12,461.54	13,202	9,985.80	10,119.14	12,401.02	12,570.48	12,742.25	12,916.37	13,092.87	13,271.78
Operating Cash Flow	545.52	684.71	654.09	598.91	709.58	697.78	707.31	716.98	726.78	736.71
Capital Expenditure	-81.50	-90.64	-76.22	-48.83	-79.01	-81.04	-82.15	-83.27	-84.41	-85.56
Free Cash Flow	464.01	594.07	577.87	550.08	630.57	616.74	625.16	633.71	642.37	651.14
WACC
PV LFCF						582.87	558.39	534.94	512.48	490.96
SUM PV LFCF										2,679.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.81
Free cash flow (t + 1)	664.17
Terminal Value	17,432.19
Present Value of Terminal Value	13,143.72

Intrinsic Value

Enterprise Value	15,823.37
Net Debt	1,098.72
Equity Value	14,724.65
Shares Outstanding	143.40
Equity Value Per Share	102.68