Discounted Cash Flow (DCF) Analysis Levered
Johnson & Johnson (JNJ)
$158.52
+0.34 (+0.21%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 81,581 | 82,059 | 82,539.80 | 83,023.42 | 83,509.87 | 83,999.17 | 84,491.34 | 84,986.39 | 85,484.35 | 85,985.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 22,201 | 23,416 | 23,007.56 | 23,142.37 | 23,277.96 | 23,414.35 | 23,551.54 | 23,689.54 | 23,828.34 | 23,967.95 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,670 | -3,498 | -3,615.81 | -3,637 | -3,658.31 | -3,679.75 | -3,701.31 | -3,722.99 | -3,744.81 | -3,766.75 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 18,531 | 19,918 | 19,391.75 | 19,505.37 | 19,619.65 | 19,734.61 | 19,850.24 | 19,966.54 | 20,083.53 | 20,201.21 |
Weighted Average Cost Of Capital
| Share price | $ 158.52 |
|---|---|
| Beta | 0.534 |
| Diluted Shares Outstanding | 2,674 |
| Cost of Debt | |
| Tax Rate | 17.42 |
| After-tax Cost of Debt | 0.45% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.307 |
| Total Debt | 39,659 |
| Total Equity | 423,882.48 |
| Total Capital | 463,541.48 |
| Debt Weighting | 8.56 |
| Equity Weighting | 91.44 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 81,581 | 82,059 | 82,539.80 | 83,023.42 | 83,509.87 | 83,999.17 | 84,491.34 | 84,986.39 | 85,484.35 | 85,985.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 22,201 | 23,416 | 23,007.56 | 23,142.37 | 23,277.96 | 23,414.35 | 23,551.54 | 23,689.54 | 23,828.34 | 23,967.95 |
| Capital Expenditure | -3,670 | -3,498 | -3,615.81 | -3,637 | -3,658.31 | -3,679.75 | -3,701.31 | -3,722.99 | -3,744.81 | -3,766.75 |
| Free Cash Flow | 18,531 | 19,918 | 19,391.75 | 19,505.37 | 19,619.65 | 19,734.61 | 19,850.24 | 19,966.54 | 20,083.53 | 20,201.21 |
| WACC | ||||||||||
| PV LFCF | 21,710.53 | 20,638.63 | 19,619.65 | 18,650.99 | 17,730.14 | 16,854.77 | 16,022.61 | 15,231.54 | ||
| SUM PV LFCF | 84,490.05 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.81 |
| Free cash flow (t + 1) | 20,605.23 |
| Terminal Value | 540,819.70 |
| Present Value of Terminal Value | 407,773.43 |
Intrinsic Value
| Enterprise Value | 492,263.48 |
|---|---|
| Net Debt | 25,532 |
| Equity Value | 466,731.48 |
| Shares Outstanding | 2,674 |
| Equity Value Per Share | 174.54 |