Discounted Cash Flow (DCF) Analysis Levered

Henry Schein, Inc. (HSIC)

$66.73

+0.07 (+0.10%)

All numbers are in Millions, Currency in USD

Stock DCF: 67.73 | 66.73 | 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	13,202	9,985.80	10,119.14	12,401.02	12,647	12,694.66	12,742.51	12,790.53	12,838.74	12,887.13
Revenue (%)
Operating Cash Flow	684.71	654.09	598.91	709.58	602	714.38	717.07	719.78	722.49	725.21
Operating Cash Flow (%)
Capital Expenditure	-90.64	-76.22	-48.83	-79.01	-96	-84.51	-84.83	-85.15	-85.47	-85.79
Capital Expenditure (%)
Free Cash Flow	594.07	577.87	550.08	630.57	506	629.87	632.25	634.63	637.02	639.42

Weighted Average Cost Of Capital

Share price	$ 66.73
Beta	0.841
Diluted Shares Outstanding	137.76
Cost of Debt
Tax Rate	25.38
After-tax Cost of Debt	3.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.268
Total Debt	1,497
Total Equity	9,192.44
Total Capital	10,689.44
Debt Weighting	14.00
Equity Weighting	86.00
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	13,202	9,985.80	10,119.14	12,401.02	12,647	12,694.66	12,742.51	12,790.53	12,838.74	12,887.13
Operating Cash Flow	684.71	654.09	598.91	709.58	602	714.38	717.07	719.78	722.49	725.21
Capital Expenditure	-90.64	-76.22	-48.83	-79.01	-96	-84.51	-84.83	-85.15	-85.47	-85.79
Free Cash Flow	594.07	577.87	550.08	630.57	506	629.87	632.25	634.63	637.02	639.42
WACC
PV LFCF						585.60	546.49	510	475.94	444.15
SUM PV LFCF										2,562.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.56
Free cash flow (t + 1)	652.21
Terminal Value	11,730.38
Present Value of Terminal Value	8,148.14

Intrinsic Value

Enterprise Value	10,710.32
Net Debt	1,380
Equity Value	9,330.32
Shares Outstanding	137.76
Equity Value Per Share	67.73