Discounted Cash Flow (DCF) Analysis Levered

Laboratory Corporation of America H... (LH)

$219.16

+1.39 (+0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 293.33 | 219.16 | undervalue

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 11,554.8013,978.5016,120.9014,876.8012,161.6012,475.7812,798.0813,128.7013,467.8713,815.79
Revenue (%)
Operating Cash Flow 1,444.702,135.303,109.601,955.901,202.301,749.141,794.321,840.681,888.231,937.01
Operating Cash Flow (%)
Capital Expenditure -400.20-381.70-460.40-481.90-453.60-399.70-410.03-420.62-431.49-442.63
Capital Expenditure (%)
Free Cash Flow 1,044.501,753.602,649.201,474748.701,349.431,384.301,420.061,456.741,494.38

Weighted Average Cost Of Capital

Share price $ 219.16
Beta 1.023
Diluted Shares Outstanding 87.60
Cost of Debt
Tax Rate 26.52
After-tax Cost of Debt 3.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.114
Total Debt 6,294.90
Total Equity 19,198.42
Total Capital 25,493.32
Debt Weighting 24.69
Equity Weighting 75.31
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 11,554.8013,978.5016,120.9014,876.8012,161.6012,475.7812,798.0813,128.7013,467.8713,815.79
Operating Cash Flow 1,444.702,135.303,109.601,955.901,202.301,749.141,794.321,840.681,888.231,937.01
Capital Expenditure -400.20-381.70-460.40-481.90-453.60-399.70-410.03-420.62-431.49-442.63
Free Cash Flow 1,044.501,753.602,649.201,474748.701,349.431,384.301,420.061,456.741,494.38
WACC
PV LFCF 1,253.651,194.761,138.641,085.151,034.17
SUM PV LFCF 5,706.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.64
Free cash flow (t + 1) 1,546.68
Terminal Value 37,359.39
Present Value of Terminal Value 25,854.22

Intrinsic Value

Enterprise Value 31,560.58
Net Debt 5,864.90
Equity Value 25,695.68
Shares Outstanding 87.60
Equity Value Per Share 293.33