Discounted Cash Flow (DCF) Analysis Levered

Henry Schein, Inc. (HSIC)

$83.45

+0.58 (+0.70%)
All numbers are in Millions, Currency in USD
Stock DCF: 104.14 | 83.45 | 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 12,461.5413,2029,985.8010,119.1412,401.0212,570.4812,742.2512,916.3713,092.8713,271.78
Revenue (%)
Operating Cash Flow 545.52684.71654.09598.91709.58697.78707.31716.98726.78736.71
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 464.01594.07577.87550.08630.57616.74625.16633.71642.37651.14

Weighted Average Cost Of Capital

Share price $ 83.45
Beta 0.717
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 6.170
Total Debt 1,216.68
Total Equity 11,967.06
Total Capital 13,183.74
Debt Weighting 9.23
Equity Weighting 90.77
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 12,461.5413,2029,985.8010,119.1412,401.0212,570.4812,742.2512,916.3713,092.8713,271.78
Operating Cash Flow 545.52684.71654.09598.91709.58697.78707.31716.98726.78736.71
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 464.01594.07577.87550.08630.57616.74625.16633.71642.37651.14
WACC
PV LFCF 583.15558.92535.70513.45492.12
SUM PV LFCF 2,683.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.76
Free cash flow (t + 1) 664.17
Terminal Value 17,664
Present Value of Terminal Value 13,350.02

Intrinsic Value

Enterprise Value 16,033.36
Net Debt 1,098.72
Equity Value 14,934.64
Shares Outstanding 143.40
Equity Value Per Share 104.14