Discounted Cash Flow (DCF) Analysis Levered

Thermo Fisher Scientific Inc. (TMO)

$548.27

+4.99 (+0.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 747.00 | 548.27 | undervalue

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 20,91824,35825,54232,21839,21145,989.4653,939.7363,264.3774,200.9887,028.21
Revenue (%)
Operating Cash Flow 4,0054,5434,9738,2899,3129,818.1411,515.4113,506.1015,840.9218,579.36
Operating Cash Flow (%)
Capital Expenditure -508-758-926-1,474-2,523-1,855.71-2,176.51-2,552.76-2,994.06-3,511.65
Capital Expenditure (%)
Free Cash Flow 3,4973,7854,0476,8156,7897,962.439,338.9110,953.3412,846.8615,067.71

Weighted Average Cost Of Capital

Share price $ 548.27
Beta 0.830
Diluted Shares Outstanding 399
Cost of Debt
Tax Rate 12.62
After-tax Cost of Debt 1.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.806
Total Debt 34,870
Total Equity 218,759.73
Total Capital 253,629.73
Debt Weighting 13.75
Equity Weighting 86.25
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 20,91824,35825,54232,21839,21145,989.4653,939.7363,264.3774,200.9887,028.21
Operating Cash Flow 4,0054,5434,9738,2899,3129,818.1411,515.4113,506.1015,840.9218,579.36
Capital Expenditure -508-758-926-1,474-2,523-1,855.71-2,176.51-2,552.76-2,994.06-3,511.65
Free Cash Flow 3,4973,7854,0476,8156,7897,962.439,338.9110,953.3412,846.8615,067.71
WACC
PV LFCF 7,507.488,302.199,181.0310,152.9111,227.66
SUM PV LFCF 46,371.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.06
Free cash flow (t + 1) 15,369.07
Terminal Value 378,548.47
Present Value of Terminal Value 282,074.21

Intrinsic Value

Enterprise Value 328,445.48
Net Debt 30,393
Equity Value 298,052.48
Shares Outstanding 399
Equity Value Per Share 747.00