Discounted Cash Flow (DCF) Analysis Levered
Vertex Pharmaceuticals Incorporated (VRTX)
$268.35
+9.76 (+3.77%)
All numbers are in Millions, Currency in USD
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 | 2,488.65 | 3,047.60 | 4,162.82 | 6,205.68 | 7,574.40 | 10,039.55 | 13,307 | 17,637.87 | 23,378.25 | 30,986.88 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 844.94 | 1,270.29 | 1,569.33 | 3,253.50 | 2,643.50 | 4,029.08 | 5,340.37 | 7,078.44 | 9,382.17 | 12,435.68 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -259.42 | -95.52 | -75.45 | -259.80 | -235 | -454.99 | -603.07 | -799.35 | -1,059.51 | -1,404.33 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 585.52 | 1,174.76 | 1,493.88 | 2,993.71 | 2,408.50 | 3,574.08 | 4,737.30 | 6,279.09 | 8,322.67 | 11,031.35 |
Weighted Average Cost Of Capital
| Share price | $ 268.35 |
|---|---|
| Beta | 0.546 |
| Diluted Shares Outstanding | 263.40 |
| Cost of Debt | |
| Tax Rate | 14.22 |
| After-tax Cost of Debt | 5.64% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.438 |
| Total Debt | 934.10 |
| Total Equity | 70,682.32 |
| Total Capital | 71,616.42 |
| Debt Weighting | 1.30 |
| Equity Weighting | 98.70 |
| 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 | 2,488.65 | 3,047.60 | 4,162.82 | 6,205.68 | 7,574.40 | 10,039.55 | 13,307 | 17,637.87 | 23,378.25 | 30,986.88 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 844.94 | 1,270.29 | 1,569.33 | 3,253.50 | 2,643.50 | 4,029.08 | 5,340.37 | 7,078.44 | 9,382.17 | 12,435.68 |
| Capital Expenditure | -259.42 | -95.52 | -75.45 | -259.80 | -235 | -454.99 | -603.07 | -799.35 | -1,059.51 | -1,404.33 |
| Free Cash Flow | 585.52 | 1,174.76 | 1,493.88 | 2,993.71 | 2,408.50 | 3,574.08 | 4,737.30 | 6,279.09 | 8,322.67 | 11,031.35 |
| WACC | ||||||||||
| PV LFCF | 3,389.69 | 4,261.08 | 5,356.49 | 6,733.50 | 8,464.51 | |||||
| SUM PV LFCF | 28,205.27 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.44 |
| Free cash flow (t + 1) | 11,251.97 |
| Terminal Value | 327,092.29 |
| Present Value of Terminal Value | 250,982.43 |
Intrinsic Value
| Enterprise Value | 279,187.70 |
|---|---|
| Net Debt | -5,860.90 |
| Equity Value | 285,048.60 |
| Shares Outstanding | 263.40 |
| Equity Value Per Share | 1,082.21 |