Discounted Cash Flow (DCF) Analysis Levered

Meridian Bioscience, Inc. (VIVO)

$32.91

+0.20 (+0.61%)

All numbers are in Millions, Currency in USD

Stock DCF: 97.69 | 32.91 | 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	200.77	213.57	201.01	253.67	317.90	359.23	405.94	458.72	518.37	585.77
Revenue (%)
Operating Cash Flow	41.35	34.78	35.83	47.98	66.87	68.01	76.85	86.84	98.13	110.89
Operating Cash Flow (%)
Capital Expenditure	-4.47	-4.20	-3.80	-3.30	-18.31	-9.44	-10.67	-12.06	-13.62	-15.40
Capital Expenditure (%)
Free Cash Flow	36.89	30.58	32.03	44.68	48.55	58.56	66.18	74.78	84.51	95.50

Weighted Average Cost Of Capital

Share price	$ 32.91
Beta	0.276
Diluted Shares Outstanding	44.01
Cost of Debt
Tax Rate	21.05
After-tax Cost of Debt	2.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.092
Total Debt	65.92
Total Equity	1,448.43
Total Capital	1,514.36
Debt Weighting	4.35
Equity Weighting	95.65
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	200.77	213.57	201.01	253.67	317.90	359.23	405.94	458.72	518.37	585.77
Operating Cash Flow	41.35	34.78	35.83	47.98	66.87	68.01	76.85	86.84	98.13	110.89
Capital Expenditure	-4.47	-4.20	-3.80	-3.30	-18.31	-9.44	-10.67	-12.06	-13.62	-15.40
Free Cash Flow	36.89	30.58	32.03	44.68	48.55	58.56	66.18	74.78	84.51	95.50
WACC
PV LFCF						54.14	58.82	63.90	69.43	75.43
SUM PV LFCF										334.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.01
Free cash flow (t + 1)	97.41
Terminal Value	4,846.11
Present Value of Terminal Value	3,981.23

Intrinsic Value

Enterprise Value	4,315.84
Net Debt	16.15
Equity Value	4,299.69
Shares Outstanding	44.01
Equity Value Per Share	97.69