Discounted Cash Flow (DCF) Analysis Levered

Ironwood Pharmaceuticals, Inc. (IRWD)

$11.75

+0.20 (+1.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 7.30 | 11.75 | overvalue

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 298.28346.64428.41389.52413.75451.97493.72539.32589.14643.56
Revenue (%)
Operating Cash Flow -99.56-70.8810.72168.84261.905054.6259.6765.1871.20
Operating Cash Flow (%)
Capital Expenditure -4.21-8.62-7.19-1.84-0.27-5.53-6.04-6.59-7.20-7.87
Capital Expenditure (%)
Free Cash Flow -103.77-79.503.54166.99261.6344.4848.5953.0757.9863.33

Weighted Average Cost Of Capital

Share price $ 11.75
Beta 1.004
Diluted Shares Outstanding 164.42
Cost of Debt
Tax Rate -163.36
After-tax Cost of Debt 6.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.588
Total Debt 475.80
Total Equity 1,931.91
Total Capital 2,407.71
Debt Weighting 19.76
Equity Weighting 80.24
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 298.28346.64428.41389.52413.75451.97493.72539.32589.14643.56
Operating Cash Flow -99.56-70.8810.72168.84261.905054.6259.6765.1871.20
Capital Expenditure -4.21-8.62-7.19-1.84-0.27-5.53-6.04-6.59-7.20-7.87
Free Cash Flow -103.77-79.503.54166.99261.6344.4848.5953.0757.9863.33
WACC
PV LFCF 41.4242.1442.8743.6144.36
SUM PV LFCF 214.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.38
Free cash flow (t + 1) 64.60
Terminal Value 1,200.69
Present Value of Terminal Value 841.04

Intrinsic Value

Enterprise Value 1,055.42
Net Debt -144.33
Equity Value 1,199.75
Shares Outstanding 164.42
Equity Value Per Share 7.30