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: 146.08 | 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	3,001.05	3,748.97	4,031.02	4,681.47	5,439.59	6,320.46	7,343.99	8,533.27	9,915.13
Revenue (%)
Operating Cash Flow	359.08	423.41	432.95	251.33	535.37	622.06	722.80	839.85	975.85
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	253.94	307.26	307.02	88	355.67	413.26	480.19	557.95	648.30

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	2.849
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	3,001.05	3,748.97	4,031.02	4,681.47	5,439.59	6,320.46	7,343.99	8,533.27	9,915.13
Operating Cash Flow	359.08	423.41	432.95	251.33	535.37	622.06	722.80	839.85	975.85
Capital Expenditure	-105.14	-116.14	-125.93	-163.33	-179.70	-208.80	-242.61	-281.90	-327.55
Free Cash Flow	253.94	307.26	307.02	88	355.67	413.26	480.19	557.95	648.30
WACC
PV LFCF					355.67	400.88	451.83	509.26	574
SUM PV LFCF									2,222.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.09
Free cash flow (t + 1)	661.26
Terminal Value	60,666.50
Present Value of Terminal Value	52,103.42

Intrinsic Value

Enterprise Value	54,326.36
Net Debt	3,683.73
Equity Value	50,642.63
Shares Outstanding	346.68
Equity Value Per Share	146.08