Discounted Cash Flow (DCF) Analysis Levered

Ligand Pharmaceuticals Incorporated (LGND)

$73.61

+0.47 (+0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 294.09 | 73.61 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 141.10251.45120.28186.42277.13366.98485.97643.53852.171,128.46
Revenue (%)
Operating Cash Flow 93.57194.06-29.3454.5978.80129.78171.85227.57301.35399.05
Operating Cash Flow (%)
Capital Expenditure -7.15-11.89-2.55-4.46-8.76-12.82-16.98-22.49-29.78-39.43
Capital Expenditure (%)
Free Cash Flow 86.41182.17-31.8950.1370.04116.95154.87205.08271.57359.62

Weighted Average Cost Of Capital

Share price $ 73.61
Beta 1.043
Diluted Shares Outstanding 17.14
Cost of Debt
Tax Rate -21.75
After-tax Cost of Debt 5.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.615
Total Debt 336.26
Total Equity 1,261.82
Total Capital 1,598.08
Debt Weighting 21.04
Equity Weighting 78.96
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 141.10251.45120.28186.42277.13366.98485.97643.53852.171,128.46
Operating Cash Flow 93.57194.06-29.3454.5978.80129.78171.85227.57301.35399.05
Capital Expenditure -7.15-11.89-2.55-4.46-8.76-12.82-16.98-22.49-29.78-39.43
Free Cash Flow 86.41182.17-31.8950.1370.04116.95154.87205.08271.57359.62
WACC
PV LFCF 108.32132.85162.93199.83245.09
SUM PV LFCF 849.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.97
Free cash flow (t + 1) 366.81
Terminal Value 6,144.24
Present Value of Terminal Value 4,187.48

Intrinsic Value

Enterprise Value 5,036.51
Net Debt -4.85
Equity Value 5,041.36
Shares Outstanding 17.14
Equity Value Per Share 294.09