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 9,5308,0966,3045,132.044,177.953,401.232,768.922,254.15
Revenue (%)
Operating Cash Flow 2,7672,1872,4581,625.811,323.561,077.50877.18714.11
Operating Cash Flow (%)
Capital Expenditure -109-278-488-210.73-171.56-139.66-113.70-92.56
Capital Expenditure (%)
Free Cash Flow 2,6581,9091,9701,415.081,152.01937.84763.49621.55

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 9,5308,0966,3045,132.044,177.953,401.232,768.922,254.15
Operating Cash Flow 2,7672,1872,4581,625.811,323.561,077.50877.18714.11
Capital Expenditure -109-278-488-210.73-171.56-139.66-113.70-92.56
Free Cash Flow 2,6581,9091,9701,415.081,152.01937.84763.49621.55
WACC
PV LFCF 1,456.971,152.01910.88720.22569.47
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