Discounted Cash Flow (DCF) Analysis Levered

Medtronic plc (MDT)

$85.76

-1.34 (-1.54%)
All numbers are in Millions, Currency in USD
Stock DCF: 82.46 | 85.76 | 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 29,95330,55728,91330,11731,68632,162.1032,645.3633,135.8833,633.7734,139.14
Revenue (%)
Operating Cash Flow 4,6847,0077,2346,2407,3466,914.317,018.207,123.667,230.697,339.34
Operating Cash Flow (%)
Capital Expenditure -1,068-1,134-1,213-1,355-1,368-1,305.04-1,324.65-1,344.56-1,364.76-1,385.26
Capital Expenditure (%)
Free Cash Flow 3,6165,8736,0214,8855,9785,609.275,693.555,779.105,865.945,954.08

Weighted Average Cost Of Capital

Share price $ 85.76
Beta 0.722
Diluted Shares Outstanding 1,351.40
Cost of Debt
Tax Rate 8.66
After-tax Cost of Debt 2.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.025
Total Debt 24,114
Total Equity 115,896.06
Total Capital 140,010.06
Debt Weighting 17.22
Equity Weighting 82.78
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 29,95330,55728,91330,11731,68632,162.1032,645.3633,135.8833,633.7734,139.14
Operating Cash Flow 4,6847,0077,2346,2407,3466,914.317,018.207,123.667,230.697,339.34
Capital Expenditure -1,068-1,134-1,213-1,355-1,368-1,305.04-1,324.65-1,344.56-1,364.76-1,385.26
Free Cash Flow 3,6165,8736,0214,8855,9785,609.275,693.555,779.105,865.945,954.08
WACC
PV LFCF 3,914.263,741.833,5773,419.423,268.79
SUM PV LFCF 24,187.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.18
Free cash flow (t + 1) 6,073.16
Terminal Value 145,290.84
Present Value of Terminal Value 107,652.63

Intrinsic Value

Enterprise Value 131,839.70
Net Debt 20,400
Equity Value 111,439.70
Shares Outstanding 1,351.40
Equity Value Per Share 82.46