Discounted Cash Flow (DCF) Analysis Levered

Eli Lilly and Company (LLY)

$553.52

-16.12 (-2.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 157.49 | 553.52 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 21,493.3022,319.5024,539.8028,318.4028,541.4030,680.3732,979.6435,451.2338,108.0440,963.97
Revenue (%)
Operating Cash Flow 5,524.504,836.606,499.607,260.707,084.407,628.388,200.078,814.609,475.2010,185.29
Operating Cash Flow (%)
Capital Expenditure -3,018.20-1,353.50-2,029.10-1,873.20-2,484-2,681.05-2,881.98-3,097.96-3,330.13-3,579.70
Capital Expenditure (%)
Free Cash Flow 2,506.303,483.104,470.505,387.504,600.404,947.335,318.095,716.656,145.076,605.60

Weighted Average Cost Of Capital

Share price $ 553.52
Beta 0.315
Diluted Shares Outstanding 904.62
Cost of Debt
Tax Rate 8.25
After-tax Cost of Debt 1.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.955
Total Debt 16,238.60
Total Equity 500,724.71
Total Capital 516,963.31
Debt Weighting 3.14
Equity Weighting 96.86
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 21,493.3022,319.5024,539.8028,318.4028,541.4030,680.3732,979.6435,451.2338,108.0440,963.97
Operating Cash Flow 5,524.504,836.606,499.607,260.707,084.407,628.388,200.078,814.609,475.2010,185.29
Capital Expenditure -3,018.20-1,353.50-2,029.10-1,873.20-2,484-2,681.05-2,881.98-3,097.96-3,330.13-3,579.70
Free Cash Flow 2,506.303,483.104,470.505,387.504,600.404,947.335,318.095,716.656,145.076,605.60
WACC
PV LFCF 4,674.794,748.304,822.974,898.824,975.86
SUM PV LFCF 24,120.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.83
Free cash flow (t + 1) 6,737.71
Terminal Value 175,919.24
Present Value of Terminal Value 132,516.32

Intrinsic Value

Enterprise Value 156,637.06
Net Debt 14,171.60
Equity Value 142,465.46
Shares Outstanding 904.62
Equity Value Per Share 157.49