Discounted Cash Flow (DCF) Analysis Levered

Johnson & Johnson (JNJ)

$160.26

-0.24 (-0.15%)
All numbers are in Millions, Currency in USD
Stock DCF: 183.72 | 160.26 | undervalue

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 81,58182,05982,58493,77594,94398,746.01102,701.35106,815.13111,093.69115,543.63
Revenue (%)
Operating Cash Flow 22,20123,41623,53623,41021,19425,977.1827,017.7228,099.9329,225.5030,396.14
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 18,53119,91820,18919,75817,18521,843.4422,718.3923,628.4024,574.8525,559.21

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 81,58182,05982,58493,77594,94398,746.01102,701.35106,815.13111,093.69115,543.63
Operating Cash Flow 22,20123,41623,53623,41021,19425,977.1827,017.7228,099.9329,225.5030,396.14
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 18,53119,91820,18919,75817,18521,843.4422,718.3923,628.4024,574.8525,559.21
WACC
PV LFCF 20,500.6520,011.0919,533.2219,066.7718,611.45
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