Discounted Cash Flow (DCF) Analysis Levered

Organon & Co. (OGN)

$29.94

-0.38 (-1.25%)

All numbers are in Millions, Currency in USD

Stock DCF: 209.36 | 29.94 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	9,530	8,096	6,304	5,132.04	4,177.95	3,401.23	2,768.92	2,254.15
Revenue (%)
Operating Cash Flow	2,767	2,187	2,458	1,625.81	1,323.56	1,077.50	877.18	714.11
Operating Cash Flow (%)
Capital Expenditure	-109	-278	-488	-210.73	-171.56	-139.66	-113.70	-92.56
Capital Expenditure (%)
Free Cash Flow	2,658	1,909	1,970	1,415.08	1,152.01	937.84	763.49	621.55

Weighted Average Cost Of Capital

Share price	$ 29.94
Beta	0.000
Diluted Shares Outstanding	254.19
Cost of Debt
Tax Rate	11.64
After-tax Cost of Debt	2.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity	3.518
Total Debt	9,134
Total Equity	7,610.53
Total Capital	16,744.53
Debt Weighting	54.55
Equity Weighting	45.45
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	9,530	8,096	6,304	5,132.04	4,177.95	3,401.23	2,768.92	2,254.15
Operating Cash Flow	2,767	2,187	2,458	1,625.81	1,323.56	1,077.50	877.18	714.11
Capital Expenditure	-109	-278	-488	-210.73	-171.56	-139.66	-113.70	-92.56
Free Cash Flow	2,658	1,909	1,970	1,415.08	1,152.01	937.84	763.49	621.55
WACC
PV LFCF				1,456.97	1,152.01	910.88	720.22	569.47
SUM PV LFCF								4,536.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	2.96
Free cash flow (t + 1)	633.98
Terminal Value	66,039.53
Present Value of Terminal Value	57,077.02

Intrinsic Value

Enterprise Value	61,613.99
Net Debt	8,397
Equity Value	53,216.99
Shares Outstanding	254.19
Equity Value Per Share	209.36