Discounted Cash Flow (DCF) Analysis Levered

IQVIA Holdings Inc. (IQV)

$190.73

-3.15 (-1.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 98.38 | 190.73 | overvalue

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	10,412	11,088	11,359	13,874	14,410	15,668.75	17,037.45	18,525.71	20,143.98	21,903.61
Revenue (%)
Operating Cash Flow	1,254	1,417	1,959	2,942	2,260	2,474.36	2,690.50	2,925.52	3,181.07	3,458.94
Operating Cash Flow (%)
Capital Expenditure	-459	-582	-616	-640	-674	-763.71	-830.42	-902.96	-981.84	-1,067.61
Capital Expenditure (%)
Free Cash Flow	795	835	1,343	2,302	1,586	1,710.64	1,860.07	2,022.55	2,199.23	2,391.34

Weighted Average Cost Of Capital

Share price	$ 190.73
Beta	1.373
Diluted Shares Outstanding	190.60
Cost of Debt
Tax Rate	19.96
After-tax Cost of Debt	2.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.281
Total Debt	13,011
Total Equity	36,353.14
Total Capital	49,364.14
Debt Weighting	26.36
Equity Weighting	73.64
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	10,412	11,088	11,359	13,874	14,410	15,668.75	17,037.45	18,525.71	20,143.98	21,903.61
Operating Cash Flow	1,254	1,417	1,959	2,942	2,260	2,474.36	2,690.50	2,925.52	3,181.07	3,458.94
Capital Expenditure	-459	-582	-616	-640	-674	-763.71	-830.42	-902.96	-981.84	-1,067.61
Free Cash Flow	795	835	1,343	2,302	1,586	1,710.64	1,860.07	2,022.55	2,199.23	2,391.34
WACC
PV LFCF						1,569.69	1,566.16	1,562.64	1,559.13	1,555.63
SUM PV LFCF										7,813.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.98
Free cash flow (t + 1)	2,439.16
Terminal Value	34,945.03
Present Value of Terminal Value	22,732.72

Intrinsic Value

Enterprise Value	30,545.98
Net Debt	11,795
Equity Value	18,750.98
Shares Outstanding	190.60
Equity Value Per Share	98.38