Discounted Cash Flow (DCF) Analysis Levered
Johnson & Johnson (JNJ)
$160.26
-0.24 (-0.15%)
All numbers are in Millions, Currency in USD
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 | 81,581 | 82,059 | 82,584 | 93,775 | 94,943 | 98,746.01 | 102,701.35 | 106,815.13 | 111,093.69 | 115,543.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 22,201 | 23,416 | 23,536 | 23,410 | 21,194 | 25,977.18 | 27,017.72 | 28,099.93 | 29,225.50 | 30,396.14 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,670 | -3,498 | -3,347 | -3,652 | -4,009 | -4,133.74 | -4,299.32 | -4,471.54 | -4,650.65 | -4,836.93 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 18,531 | 19,918 | 20,189 | 19,758 | 17,185 | 21,843.44 | 22,718.39 | 23,628.40 | 24,574.85 | 25,559.21 |
Weighted Average Cost Of Capital
| Share price | $ 160.26 |
|---|---|
| Beta | 0.544 |
| Diluted Shares Outstanding | 2,663.90 |
| Cost of Debt | |
| Tax Rate | 17.42 |
| After-tax Cost of Debt | 0.58% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.109 |
| Total Debt | 39,659 |
| Total Equity | 426,916.61 |
| Total Capital | 466,575.61 |
| Debt Weighting | 8.50 |
| Equity Weighting | 91.50 |
| 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 | 81,581 | 82,059 | 82,584 | 93,775 | 94,943 | 98,746.01 | 102,701.35 | 106,815.13 | 111,093.69 | 115,543.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 22,201 | 23,416 | 23,536 | 23,410 | 21,194 | 25,977.18 | 27,017.72 | 28,099.93 | 29,225.50 | 30,396.14 |
| Capital Expenditure | -3,670 | -3,498 | -3,347 | -3,652 | -4,009 | -4,133.74 | -4,299.32 | -4,471.54 | -4,650.65 | -4,836.93 |
| Free Cash Flow | 18,531 | 19,918 | 20,189 | 19,758 | 17,185 | 21,843.44 | 22,718.39 | 23,628.40 | 24,574.85 | 25,559.21 |
| WACC | ||||||||||
| PV LFCF | 20,500.65 | 20,011.09 | 19,533.22 | 19,066.77 | 18,611.45 | |||||
| SUM PV LFCF | 97,723.18 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.55 |
| Free cash flow (t + 1) | 26,070.40 |
| Terminal Value | 572,975.75 |
| Present Value of Terminal Value | 417,223.70 |
Intrinsic Value
| Enterprise Value | 514,946.88 |
|---|---|
| Net Debt | 25,532 |
| Equity Value | 489,414.88 |
| Shares Outstanding | 2,663.90 |
| Equity Value Per Share | 183.72 |