Discounted Cash Flow (DCF) Analysis Levered

Johnson & Johnson (JNJ)

$176.94

-5.18 (-2.84%)
All numbers are in Millions, Currency in USD
Stock DCF: 216.52 | 176.94 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 76,45081,58182,05985,053.1388,156.5091,373.1194,707.0898,162.71101,744.42105,456.81109,304.67
Revenue (%)
Operating Cash Flow 21,05622,20123,41623,613.9224,475.5325,368.5926,294.2227,253.6328,248.0529,278.7530,347.05
Operating Cash Flow (%)
Capital Expenditure -3,279-3,670-3,498-3,699.94-3,834.94-3,974.87-4,119.90-4,270.23-4,426.04-4,587.53-4,754.92
Capital Expenditure (%)
Free Cash Flow 17,77718,53119,91819,913.9820,640.5921,393.7122,174.3222,983.4023,822.0124,691.2125,592.13

Weighted Average Cost Of Capital

Share price $ 176.94
Beta 0.658
Diluted Shares Outstanding 2,674
Cost of Debt
Tax Rate 8.33
After-tax Cost of Debt 0.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.313
Total Debt 33,751
Total Equity 473,137.56
Total Capital 506,888.56
Debt Weighting 6.66
Equity Weighting 93.34
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 76,45081,58182,05985,053.1388,156.5091,373.1194,707.0898,162.71101,744.42105,456.81109,304.67
Operating Cash Flow 21,05622,20123,41623,613.9224,475.5325,368.5926,294.2227,253.6328,248.0529,278.7530,347.05
Capital Expenditure -3,279-3,670-3,498-3,699.94-3,834.94-3,974.87-4,119.90-4,270.23-4,426.04-4,587.53-4,754.92
Free Cash Flow 17,77718,53119,91819,913.9820,640.5921,393.7122,174.3222,983.4023,822.0124,691.2125,592.13
WACC
PV LFCF 21,094.8820,640.5920,196.0919,761.1519,335.5918,919.1918,511.7518,113.09
SUM PV LFCF 100,252.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.93
Free cash flow (t + 1) 26,103.98
Terminal Value 664,223.31
Present Value of Terminal Value 497,988.43

Intrinsic Value

Enterprise Value 598,241.40
Net Debt 19,264
Equity Value 578,977.40
Shares Outstanding 2,674
Equity Value Per Share 216.52