Discounted Cash Flow (DCF) Analysis Levered
Zimmer Biomet Holdings, Inc. (ZBH)
$126.04
+1.08 (+0.86%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 7,982.20 | 7,024.50 | 7,836.20 | 6,939.90 | 6,665.07 | 6,401.12 | 6,147.62 | 5,904.16 | 5,670.34 |
---|---|---|---|---|---|---|---|---|---|
Revenue (%) | |||||||||
Operating Cash Flow | 1,585.80 | 1,204.50 | 1,499.20 | 1,356.20 | 1,261.16 | 1,211.21 | 1,163.25 | 1,117.18 | 1,072.94 |
Operating Cash Flow (%) | |||||||||
Capital Expenditure | -404.70 | -117.90 | -180.40 | -187.90 | -195.92 | -188.16 | -180.71 | -173.55 | -166.68 |
Capital Expenditure (%) | |||||||||
Free Cash Flow | 1,181.10 | 1,086.60 | 1,318.80 | 1,168.30 | 1,065.24 | 1,023.05 | 982.54 | 943.63 | 906.26 |
Weighted Average Cost Of Capital
Share price | $ 126.04 |
---|---|
Beta | 1.005 |
Diluted Shares Outstanding | 210.30 |
Cost of Debt | |
Tax Rate | 27.83 |
After-tax Cost of Debt | 2.09% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.123 |
Total Debt | 5,696.50 |
Total Equity | 26,506.21 |
Total Capital | 32,202.71 |
Debt Weighting | 17.69 |
Equity Weighting | 82.31 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 7,982.20 | 7,024.50 | 7,836.20 | 6,939.90 | 6,665.07 | 6,401.12 | 6,147.62 | 5,904.16 | 5,670.34 |
---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,585.80 | 1,204.50 | 1,499.20 | 1,356.20 | 1,261.16 | 1,211.21 | 1,163.25 | 1,117.18 | 1,072.94 |
Capital Expenditure | -404.70 | -117.90 | -180.40 | -187.90 | -195.92 | -188.16 | -180.71 | -173.55 | -166.68 |
Free Cash Flow | 1,181.10 | 1,086.60 | 1,318.80 | 1,168.30 | 1,065.24 | 1,023.05 | 982.54 | 943.63 | 906.26 |
WACC | |||||||||
PV LFCF | 757.37 | 679.41 | 609.48 | 546.74 | 490.46 | ||||
SUM PV LFCF | 4,050.87 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.06 |
Free cash flow (t + 1) | 924.38 |
Terminal Value | 18,268.39 |
Present Value of Terminal Value | 12,988.65 |
Intrinsic Value
Enterprise Value | 17,039.52 |
---|---|
Net Debt | 5,320.80 |
Equity Value | 11,718.72 |
Shares Outstanding | 210.30 |
Equity Value Per Share | 55.72 |