Discounted Cash Flow (DCF) Analysis Levered

Masimo Corporation (MASI)

$139.17

-0.90 (-0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 74.82 | 139.17 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 790.25858.29937.841,021.671,1131,212.491,320.881,438.951,567.591,707.711,860.37
Revenue (%)
Operating Cash Flow 56.06239.53221.64199.69217.54236.98258.17281.24306.38333.77363.61
Operating Cash Flow (%)
Capital Expenditure -46.76-22.68-72.49-55.48-60.44-65.84-71.72-78.14-85.12-92.73-101.02
Capital Expenditure (%)
Free Cash Flow 9.30216.84149.15144.21157.10171.14186.44203.11221.26241.04262.59

Weighted Average Cost Of Capital

Share price $ 139.17
Beta 0.956
Diluted Shares Outstanding 58.04
Cost of Debt
Tax Rate 16.30
After-tax Cost of Debt 0.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.488
Total Debt 32.66
Total Equity 8,077.01
Total Capital 8,109.67
Debt Weighting 0.40
Equity Weighting 99.60
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 790.25858.29937.841,021.671,1131,212.491,320.881,438.951,567.591,707.711,860.37
Operating Cash Flow 56.06239.53221.64199.69217.54236.98258.17281.24306.38333.77363.61
Capital Expenditure -46.76-22.68-72.49-55.48-60.44-65.84-71.72-78.14-85.12-92.73-101.02
Free Cash Flow 9.30216.84149.15144.21157.10171.14186.44203.11221.26241.04262.59
WACC
PV LFCF 132.96133.55134.14134.73135.33135.92136.52137.13
SUM PV LFCF 867.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.46
Free cash flow (t + 1) 267.84
Terminal Value 4,146.16
Present Value of Terminal Value 2,762.47

Intrinsic Value

Enterprise Value 3,629.59
Net Debt -712.59
Equity Value 4,342.18
Shares Outstanding 58.04
Equity Value Per Share 74.82