Discounted Cash Flow (DCF) Analysis Levered

Vertex Pharmaceuticals Incorporated (VRTX)

$334.11

+1.53 (+0.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,179.91 | 334.11 | undervalue

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 3,047.604,162.826,205.687,574.408,930.7011,735.6015,421.4620,264.9426,629.6434,993.33
Revenue (%)
Operating Cash Flow 1,270.291,569.333,253.502,643.504,129.904,998.256,568.078,630.9411,341.6914,903.83
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 1,174.761,493.882,993.712,408.503,925.204,657.266,119.998,042.1210,567.9413,887.06

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 3,047.604,162.826,205.687,574.408,930.7011,735.6015,421.4620,264.9426,629.6434,993.33
Operating Cash Flow 1,270.291,569.333,253.502,643.504,129.904,998.256,568.078,630.9411,341.6914,903.83
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 1,174.761,493.882,993.712,408.503,925.204,657.266,119.998,042.1210,567.9413,887.06
WACC
PV LFCF 4,391.575,441.636,742.778,355.0210,352.78
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