Discounted Cash Flow (DCF) Analysis Levered
Zimmer Biomet Holdings, Inc. (ZBH)
$125.39
-2.40 (-1.88%)
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 | $ 125.39 |
|---|---|
| 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 | 8.243 |
| Total Debt | 5,696.50 |
| Total Equity | 26,369.52 |
| Total Capital | 32,066.02 |
| Debt Weighting | 17.76 |
| Equity Weighting | 82.24 |
| 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 | 1,065.24 | 954.78 | 855.78 | 767.05 | 687.51 | ||||
| SUM PV LFCF | 4,041.41 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.15 |
| Free cash flow (t + 1) | 924.38 |
| Terminal Value | 17,949.14 |
| Present Value of Terminal Value | 12,708.16 |
Intrinsic Value
| Enterprise Value | 16,749.57 |
|---|---|
| Net Debt | 5,320.80 |
| Equity Value | 11,428.77 |
| Shares Outstanding | 210.30 |
| Equity Value Per Share | 54.35 |