Discounted Cash Flow (DCF) Analysis Levered

Ligand Pharmaceuticals Incorporated (LGND)

$89.2

+14.78 (+19.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.40 | 89.2 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 120.28186.42277.13196.24131.31144.90159.88176.42194.67214.80
Revenue (%)
Operating Cash Flow -29.3454.5978.80137.853437.5241.4045.6850.4055.62
Operating Cash Flow (%)
Capital Expenditure -2.55-4.46-8.76-17.92-5.52-6.09-6.72-7.41-8.18-9.03
Capital Expenditure (%)
Free Cash Flow -31.8950.1370.04119.9328.4831.4334.6838.2742.2246.59

Weighted Average Cost Of Capital

Share price $ 89.2
Beta 0.921
Diluted Shares Outstanding 17.76
Cost of Debt
Tax Rate 15.46
After-tax Cost of Debt 3.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.669
Total Debt 87.75
Total Equity 1,583.92
Total Capital 1,671.67
Debt Weighting 5.25
Equity Weighting 94.75
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 120.28186.42277.13196.24131.31144.90159.88176.42194.67214.80
Operating Cash Flow -29.3454.5978.80137.853437.5241.4045.6850.4055.62
Capital Expenditure -2.55-4.46-8.76-17.92-5.52-6.09-6.72-7.41-8.18-9.03
Free Cash Flow -31.8950.1370.04119.9328.4831.4334.6838.2742.2246.59
WACC
PV LFCF 28.9929.5130.0330.5731.11
SUM PV LFCF 150.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.41
Free cash flow (t + 1) 47.52
Terminal Value 741.38
Present Value of Terminal Value 495.10

Intrinsic Value

Enterprise Value 645.32
Net Debt 87.70
Equity Value 557.61
Shares Outstanding 17.76
Equity Value Per Share 31.40