Discounted Cash Flow (DCF) Analysis Levered

Waters Corporation (WAT)

$275.5

+0.38 (+0.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 208.49 | 275.5 | overvalue

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 2,309.082,419.932,406.602,365.362,785.872,927.363,076.023,232.243,396.393,568.88
Revenue (%)
Operating Cash Flow 697.64604.45643.09790.51747.27832.28874.55918.97965.641,014.68
Operating Cash Flow (%)
Capital Expenditure -90.47-96.08-163.82-172.38-168.27-164.07-172.40-181.16-190.36-200.03
Capital Expenditure (%)
Free Cash Flow 607.17508.37479.26618.12579.01668.22702.15737.81775.28814.65

Weighted Average Cost Of Capital

Share price $ 275.5
Beta 0.871
Diluted Shares Outstanding 62.41
Cost of Debt
Tax Rate 14.06
After-tax Cost of Debt 1.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.806
Total Debt 1,513.87
Total Equity 17,195.06
Total Capital 18,708.93
Debt Weighting 8.09
Equity Weighting 91.91
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 2,309.082,419.932,406.602,365.362,785.872,927.363,076.023,232.243,396.393,568.88
Operating Cash Flow 697.64604.45643.09790.51747.27832.28874.55918.97965.641,014.68
Capital Expenditure -90.47-96.08-163.82-172.38-168.27-164.07-172.40-181.16-190.36-200.03
Free Cash Flow 607.17508.37479.26618.12579.01668.22702.15737.81775.28814.65
WACC
PV LFCF 503.73493.20482.90472.82462.94
SUM PV LFCF 2,985.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.32
Free cash flow (t + 1) 830.95
Terminal Value 15,619.28
Present Value of Terminal Value 10,971.29

Intrinsic Value

Enterprise Value 13,957.13
Net Debt 944.59
Equity Value 13,012.54
Shares Outstanding 62.41
Equity Value Per Share 208.49