Discounted Cash Flow (DCF) Analysis Levered

Merit Medical Systems, Inc. (MMSI)

$68.19

+0.07 (+0.10%)

All numbers are in Millions, Currency in USD

Stock DCF: 20.01 | 68.19 | 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	882.75	994.85	963.88	1,074.75	1,150.98	1,232.07	1,318.87	1,411.79	1,511.26	1,617.73
Revenue (%)
Operating Cash Flow	86.53	77.81	165.27	147.23	114.29	143.90	154.04	164.90	176.51	188.95
Operating Cash Flow (%)
Capital Expenditure	-66.34	-81.50	-49.28	-27.94	-45.03	-67.35	-72.09	-77.17	-82.61	-88.43
Capital Expenditure (%)
Free Cash Flow	20.20	-3.68	115.99	119.29	69.26	76.56	81.95	87.73	93.91	100.52

Weighted Average Cost Of Capital

Share price	$ 68.19
Beta	0.964
Diluted Shares Outstanding	57.67
Cost of Debt
Tax Rate	9.82
After-tax Cost of Debt	2.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.073
Total Debt	268.75
Total Equity	3,932.59
Total Capital	4,201.34
Debt Weighting	6.40
Equity Weighting	93.60
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	882.75	994.85	963.88	1,074.75	1,150.98	1,232.07	1,318.87	1,411.79	1,511.26	1,617.73
Operating Cash Flow	86.53	77.81	165.27	147.23	114.29	143.90	154.04	164.90	176.51	188.95
Capital Expenditure	-66.34	-81.50	-49.28	-27.94	-45.03	-67.35	-72.09	-77.17	-82.61	-88.43
Free Cash Flow	20.20	-3.68	115.99	119.29	69.26	76.56	81.95	87.73	93.91	100.52
WACC
PV LFCF						70.48	69.45	68.43	67.44	66.45
SUM PV LFCF										342.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.63
Free cash flow (t + 1)	102.53
Terminal Value	1,546.49
Present Value of Terminal Value	1,022.35

Intrinsic Value

Enterprise Value	1,364.60
Net Debt	210.34
Equity Value	1,154.26
Shares Outstanding	57.67
Equity Value Per Share	20.01