Discounted Cash Flow (DCF) Analysis Levered

Legend Biotech Corporation (LEGN)

$46.09

-2.79 (-5.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 49.83 | 46.09 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 49.1357.2675.6889.79109.95134.64164.87201.88247.21
Revenue (%)
Operating Cash Flow 307.68-83.07-223-198.46-9.50-11.63-14.24-17.43-21.35
Operating Cash Flow (%)
Capital Expenditure -21.02-39.17-49.78-52.97-64.86-79.42-97.25-119.08-145.82
Capital Expenditure (%)
Free Cash Flow 286.66-122.24-272.78-251.43-74.35-91.05-111.49-136.52-167.17

Weighted Average Cost Of Capital

Share price $ 46.09
Beta -0.718
Diluted Shares Outstanding 140.85
Cost of Debt
Tax Rate -0.00
After-tax Cost of Debt 0.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity -0.500
Total Debt 122.97
Total Equity 6,491.85
Total Capital 6,614.82
Debt Weighting 1.86
Equity Weighting 98.14
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 49.1357.2675.6889.79109.95134.64164.87201.88247.21
Operating Cash Flow 307.68-83.07-223-198.46-9.50-11.63-14.24-17.43-21.35
Capital Expenditure -21.02-39.17-49.78-52.97-64.86-79.42-97.25-119.08-145.82
Free Cash Flow 286.66-122.24-272.78-251.43-74.35-91.05-111.49-136.52-167.17
WACC
PV LFCF -74.35-91.49-112.57-138.50-170.42
SUM PV LFCF -590.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -0.48
Free cash flow (t + 1) -170.51
Terminal Value 6,875.54
Present Value of Terminal Value 7,042.95

Intrinsic Value

Enterprise Value 6,452.79
Net Debt -565.97
Equity Value 7,018.77
Shares Outstanding 140.85
Equity Value Per Share 49.83