Discounted Cash Flow (DCF) Analysis Levered

Teva Pharmaceutical Industries Limi... (TEVA)

$8.85

+0.03 (+0.34%)

All numbers are in Millions, Currency in USD

Stock DCF: -4.36 | 8.85 | overvalue

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	18,854	16,887	16,658	15,879	14,925	14,086.47	13,295.05	12,548.09	11,843.10	11,177.72
Revenue (%)
Operating Cash Flow	2,446	748	1,216	798	1,590	1,137.66	1,073.74	1,013.42	956.48	902.74
Operating Cash Flow (%)
Capital Expenditure	-651	-525	-578	-562	-548	-485.77	-458.48	-432.72	-408.41	-385.46
Capital Expenditure (%)
Free Cash Flow	1,795	223	638	236	1,042	651.89	615.26	580.70	548.07	517.28

Weighted Average Cost Of Capital

Share price	$ 8.85
Beta	1.218
Diluted Shares Outstanding	1,110
Cost of Debt
Tax Rate	23.23
After-tax Cost of Debt	3.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.242
Total Debt	21,561
Total Equity	9,823.50
Total Capital	31,384.50
Debt Weighting	68.70
Equity Weighting	31.30
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	18,854	16,887	16,658	15,879	14,925	14,086.47	13,295.05	12,548.09	11,843.10	11,177.72
Operating Cash Flow	2,446	748	1,216	798	1,590	1,137.66	1,073.74	1,013.42	956.48	902.74
Capital Expenditure	-651	-525	-578	-562	-548	-485.77	-458.48	-432.72	-408.41	-385.46
Free Cash Flow	1,795	223	638	236	1,042	651.89	615.26	580.70	548.07	517.28
WACC
PV LFCF						617.73	552.47	494.11	441.91	395.23
SUM PV LFCF										2,501.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.53
Free cash flow (t + 1)	527.63
Terminal Value	14,946.89
Present Value of Terminal Value	11,420.13

Intrinsic Value

Enterprise Value	13,921.58
Net Debt	18,760
Equity Value	-4,838.42
Shares Outstanding	1,110
Equity Value Per Share	-4.36