Discounted Cash Flow (DCF) Analysis Levered
Merck & Co., Inc. (MRK)
$106.93
+2.13 (+2.03%)
All numbers are in Millions, Currency in USD
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 | 42,294 | 46,840 | 47,994 | 48,704 | 59,283 | 64,679.63 | 70,567.52 | 76,991.39 | 84,000.04 | 91,646.69 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 10,922 | 13,440 | 10,253 | 14,109 | 19,095 | 17,729.89 | 19,343.87 | 21,104.77 | 23,025.97 | 25,122.06 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -2,615 | -3,473 | -4,684 | -4,448 | -4,388 | -5,160.34 | -5,630.10 | -6,142.61 | -6,701.79 | -7,311.86 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 8,307 | 9,967 | 5,569 | 9,661 | 14,707 | 12,569.54 | 13,713.77 | 14,962.15 | 16,324.18 | 17,810.20 |
Weighted Average Cost Of Capital
| Share price | $ 106.93 |
|---|---|
| Beta | 0.353 |
| Diluted Shares Outstanding | 2,542 |
| Cost of Debt | |
| Tax Rate | 11.71 |
| After-tax Cost of Debt | 4.41% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.192 |
| Total Debt | 30,691 |
| Total Equity | 271,816.06 |
| Total Capital | 302,507.06 |
| Debt Weighting | 10.15 |
| Equity Weighting | 89.85 |
| 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 | 42,294 | 46,840 | 47,994 | 48,704 | 59,283 | 64,679.63 | 70,567.52 | 76,991.39 | 84,000.04 | 91,646.69 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 10,922 | 13,440 | 10,253 | 14,109 | 19,095 | 17,729.89 | 19,343.87 | 21,104.77 | 23,025.97 | 25,122.06 |
| Capital Expenditure | -2,615 | -3,473 | -4,684 | -4,448 | -4,388 | -5,160.34 | -5,630.10 | -6,142.61 | -6,701.79 | -7,311.86 |
| Free Cash Flow | 8,307 | 9,967 | 5,569 | 9,661 | 14,707 | 12,569.54 | 13,713.77 | 14,962.15 | 16,324.18 | 17,810.20 |
| WACC | ||||||||||
| PV LFCF | 11,958.47 | 12,412.77 | 12,884.34 | 13,373.82 | 13,881.89 | |||||
| SUM PV LFCF | 64,511.28 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.11 |
| Free cash flow (t + 1) | 18,166.40 |
| Terminal Value | 584,128.74 |
| Present Value of Terminal Value | 455,290.29 |
Intrinsic Value
| Enterprise Value | 519,801.57 |
|---|---|
| Net Debt | 17,997 |
| Equity Value | 501,804.57 |
| Shares Outstanding | 2,542 |
| Equity Value Per Share | 197.41 |