Discounted Cash Flow (DCF) Analysis Levered

Waters Corporation (WAT)

$269

+0.13 (+0.05%)

All numbers are in Millions, Currency in USD

Stock DCF: 180.47 | 269 | overvalue

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	2,419.93	2,406.60	2,365.36	2,785.87	2,971.96	3,136.85	3,310.89	3,494.58	3,688.47	3,893.12
Revenue (%)
Operating Cash Flow	604.45	643.09	790.51	747.27	611.66	831.42	877.55	926.24	977.63	1,031.87
Operating Cash Flow (%)
Capital Expenditure	-127.57	-163.82	-172.38	-168.27	-183.46	-198.12	-209.11	-220.71	-232.96	-245.88
Capital Expenditure (%)
Free Cash Flow	476.88	479.26	618.12	579.01	428.21	633.30	668.44	705.52	744.67	785.98

Weighted Average Cost Of Capital

Share price	$ 269
Beta	0.868
Diluted Shares Outstanding	60.33
Cost of Debt
Tax Rate	15.53
After-tax Cost of Debt	1.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.535
Total Debt	1,651.31
Total Equity	16,229.04
Total Capital	17,880.35
Debt Weighting	9.24
Equity Weighting	90.76
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	2,419.93	2,406.60	2,365.36	2,785.87	2,971.96	3,136.85	3,310.89	3,494.58	3,688.47	3,893.12
Operating Cash Flow	604.45	643.09	790.51	747.27	611.66	831.42	877.55	926.24	977.63	1,031.87
Capital Expenditure	-127.57	-163.82	-172.38	-168.27	-183.46	-198.12	-209.11	-220.71	-232.96	-245.88
Free Cash Flow	476.88	479.26	618.12	579.01	428.21	633.30	668.44	705.52	744.67	785.98
WACC
PV LFCF						586.82	573.93	561.31	548.98	536.91
SUM PV LFCF										2,807.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.92
Free cash flow (t + 1)	801.70
Terminal Value	13,542.28
Present Value of Terminal Value	9,250.86

Intrinsic Value

Enterprise Value	12,058.81
Net Debt	1,170.78
Equity Value	10,888.03
Shares Outstanding	60.33
Equity Value Per Share	180.47