Discounted Cash Flow (DCF) Analysis Levered

PPD, Inc. (PPD)

$47.28

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 88.05 | 47.28 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 3,001.053,748.974,031.024,681.475,439.596,320.467,343.998,533.279,915.13
Revenue (%)
Operating Cash Flow 359.08423.41432.95251.33535.37622.06722.80839.85975.85
Operating Cash Flow (%)
Capital Expenditure -105.14-116.14-125.93-163.33-179.70-208.80-242.61-281.90-327.55
Capital Expenditure (%)
Free Cash Flow 253.94307.26307.0288355.67413.26480.19557.95648.30

Weighted Average Cost Of Capital

Share price $ 47.28
Beta 0.000
Diluted Shares Outstanding 346.68
Cost of Debt
Tax Rate 18.05
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.651
Total Debt 4,451.73
Total Equity 16,391.22
Total Capital 20,842.95
Debt Weighting 21.36
Equity Weighting 78.64
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 3,001.053,748.974,031.024,681.475,439.596,320.467,343.998,533.279,915.13
Operating Cash Flow 359.08423.41432.95251.33535.37622.06722.80839.85975.85
Capital Expenditure -105.14-116.14-125.93-163.33-179.70-208.80-242.61-281.90-327.55
Free Cash Flow 253.94307.26307.0288355.67413.26480.19557.95648.30
WACC
PV LFCF 355.67398.44446.36500.04560.18
SUM PV LFCF 2,179.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.72
Free cash flow (t + 1) 661.26
Terminal Value 38,445.63
Present Value of Terminal Value 32,028.34

Intrinsic Value

Enterprise Value 34,207.94
Net Debt 3,683.73
Equity Value 30,524.21
Shares Outstanding 346.68
Equity Value Per Share 88.05