Discounted Cash Flow (DCF) Analysis Levered

Teva Pharmaceutical Industries Limi... (TEVA)

$10.38

+0.11 (+1.07%)

All numbers are in Millions, Currency in USD

Stock DCF: -0.13 | 10.38 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	22,385	18,854	16,887	16,658	15,879	14,599.18	13,422.51	12,340.69	11,346.05	10,431.58
Revenue (%)
Operating Cash Flow	3,507	2,446	748	1,216	798	1,325.46	1,218.63	1,120.41	1,030.10	947.08
Operating Cash Flow (%)
Capital Expenditure	-874	-651	-525	-578	-562	-510.25	-469.12	-431.31	-396.55	-364.59
Capital Expenditure (%)
Free Cash Flow	2,633	1,795	223	638	236	815.21	749.50	689.09	633.56	582.49

Weighted Average Cost Of Capital

Share price	$ 10.38
Beta	1.191
Diluted Shares Outstanding	1,107
Cost of Debt
Tax Rate	36.63
After-tax Cost of Debt	2.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.140
Total Debt	23,459
Total Equity	11,490.66
Total Capital	34,949.66
Debt Weighting	67.12
Equity Weighting	32.88
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	22,385	18,854	16,887	16,658	15,879	14,599.18	13,422.51	12,340.69	11,346.05	10,431.58
Operating Cash Flow	3,507	2,446	748	1,216	798	1,325.46	1,218.63	1,120.41	1,030.10	947.08
Capital Expenditure	-874	-651	-525	-578	-562	-510.25	-469.12	-431.31	-396.55	-364.59
Free Cash Flow	2,633	1,795	223	638	236	815.21	749.50	689.09	633.56	582.49
WACC
PV LFCF						621.70	546.35	480.13	421.94	370.80
SUM PV LFCF										3,059.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.62
Free cash flow (t + 1)	594.14
Terminal Value	22,677.16
Present Value of Terminal Value	18,093.19

Intrinsic Value

Enterprise Value	21,152.53
Net Debt	21,294
Equity Value	-141.47
Shares Outstanding	1,107
Equity Value Per Share	-0.13