Discounted Cash Flow (DCF) Analysis Levered

Legend Biotech Corporation (LEGN)

$40.28

-0.52 (-1.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 80.17 | 40.28 | 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 $ 40.28
Beta -0.663
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 0.523
Total Debt 122.97
Total Equity 5,673.50
Total Capital 5,796.47
Debt Weighting 2.12
Equity Weighting 97.88
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 -74.35-90.57-110.32-134.37-163.67
SUM PV LFCF -570.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 0.53
Free cash flow (t + 1) -170.51
Terminal Value 11,599.55
Present Value of Terminal Value 11,296.99

Intrinsic Value

Enterprise Value 10,726.73
Net Debt -565.97
Equity Value 11,292.70
Shares Outstanding 140.85
Equity Value Per Share 80.17