Discounted Cash Flow (DCF) Analysis Levered
Johnson & Johnson (JNJ)
$176.98
+3.04 (+1.75%)
All numbers are in Millions, Currency in USD
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 | 76,450 | 81,581 | 82,059 | 85,053.13 | 88,156.50 | 91,373.11 | 94,707.08 | 98,162.71 | 101,744.42 | 105,456.81 | 109,304.67 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 21,056 | 22,201 | 23,416 | 23,613.92 | 24,475.53 | 25,368.59 | 26,294.22 | 27,253.63 | 28,248.05 | 29,278.75 | 30,347.05 |
| 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 | 17,777 | 18,531 | 19,918 | 19,913.98 | 20,640.59 | 21,393.71 | 22,174.32 | 22,983.40 | 23,822.01 | 24,691.21 | 25,592.13 |
Weighted Average Cost Of Capital
| Share price | $ 176.98 |
|---|---|
| Beta | 0.720 |
| 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 | 6.184 |
| Total Debt | 33,751 |
| Total Equity | 473,244.52 |
| Total Capital | 506,995.52 |
| 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 | 76,450 | 81,581 | 82,059 | 85,053.13 | 88,156.50 | 91,373.11 | 94,707.08 | 98,162.71 | 101,744.42 | 105,456.81 | 109,304.67 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 21,056 | 22,201 | 23,416 | 23,613.92 | 24,475.53 | 25,368.59 | 26,294.22 | 27,253.63 | 28,248.05 | 29,278.75 | 30,347.05 |
| 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 | 17,777 | 18,531 | 19,918 | 19,913.98 | 20,640.59 | 21,393.71 | 22,174.32 | 22,983.40 | 23,822.01 | 24,691.21 | 25,592.13 |
| WACC | |||||||||||
| PV LFCF | 21,068.99 | 20,640.59 | 20,220.90 | 19,809.75 | 19,406.95 | 19,012.35 | 18,625.76 | 18,247.04 | |||
| SUM PV LFCF | 100,617.76 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.80 |
| Free cash flow (t + 1) | 26,103.98 |
| Terminal Value | 686,946.74 |
| Present Value of Terminal Value | 518,196.80 |
Intrinsic Value
| Enterprise Value | 618,814.56 |
|---|---|
| Net Debt | 19,264 |
| Equity Value | 599,550.56 |
| Shares Outstanding | 2,674 |
| Equity Value Per Share | 224.21 |