Discounted Cash Flow (DCF) Analysis Levered
Vertex Pharmaceuticals Incorporated (VRTX)
$334.11
+1.53 (+0.46%)
All numbers are in Millions, Currency in USD
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 | 3,047.60 | 4,162.82 | 6,205.68 | 7,574.40 | 8,930.70 | 11,735.60 | 15,421.46 | 20,264.94 | 26,629.64 | 34,993.33 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,270.29 | 1,569.33 | 3,253.50 | 2,643.50 | 4,129.90 | 4,998.25 | 6,568.07 | 8,630.94 | 11,341.69 | 14,903.83 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -95.52 | -75.45 | -259.80 | -235 | -204.70 | -340.99 | -448.09 | -588.82 | -773.75 | -1,016.77 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,174.76 | 1,493.88 | 2,993.71 | 2,408.50 | 3,925.20 | 4,657.26 | 6,119.99 | 8,042.12 | 10,567.94 | 13,887.06 |
Weighted Average Cost Of Capital
| Share price | $ 334.11 |
|---|---|
| Beta | 0.490 |
| Diluted Shares Outstanding | 259.10 |
| Cost of Debt | |
| Tax Rate | 21.51 |
| After-tax Cost of Debt | 5.31% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.060 |
| Total Debt | 810.30 |
| Total Equity | 86,567.90 |
| Total Capital | 87,378.20 |
| Debt Weighting | 0.93 |
| Equity Weighting | 99.07 |
| 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 | 3,047.60 | 4,162.82 | 6,205.68 | 7,574.40 | 8,930.70 | 11,735.60 | 15,421.46 | 20,264.94 | 26,629.64 | 34,993.33 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,270.29 | 1,569.33 | 3,253.50 | 2,643.50 | 4,129.90 | 4,998.25 | 6,568.07 | 8,630.94 | 11,341.69 | 14,903.83 |
| Capital Expenditure | -95.52 | -75.45 | -259.80 | -235 | -204.70 | -340.99 | -448.09 | -588.82 | -773.75 | -1,016.77 |
| Free Cash Flow | 1,174.76 | 1,493.88 | 2,993.71 | 2,408.50 | 3,925.20 | 4,657.26 | 6,119.99 | 8,042.12 | 10,567.94 | 13,887.06 |
| WACC | ||||||||||
| PV LFCF | 4,391.57 | 5,441.63 | 6,742.77 | 8,355.02 | 10,352.78 | |||||
| SUM PV LFCF | 35,283.78 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.05 |
| Free cash flow (t + 1) | 14,164.80 |
| Terminal Value | 349,748.25 |
| Present Value of Terminal Value | 260,736.71 |
Intrinsic Value
| Enterprise Value | 296,020.49 |
|---|---|
| Net Debt | -9,693.70 |
| Equity Value | 305,714.19 |
| Shares Outstanding | 259.10 |
| Equity Value Per Share | 1,179.91 |