Discounted Cash Flow (DCF) Analysis Levered

Zimmer Biomet Holdings, Inc. (ZBH)

$130.77

-0.17 (-0.13%)
All numbers are in Millions, Currency in USD
Stock DCF: 51.45 | 130.77 | overvalue

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 7,982.207,024.507,836.206,939.906,665.076,401.126,147.625,904.165,670.34
Revenue (%)
Operating Cash Flow 1,585.801,204.501,499.201,356.201,261.161,211.211,163.251,117.181,072.94
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 1,181.101,086.601,318.801,168.301,065.241,023.05982.54943.63906.26

Weighted Average Cost Of Capital

Share price $ 130.77
Beta 1.017
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 8.441
Total Debt 5,696.50
Total Equity 27,500.93
Total Capital 33,197.43
Debt Weighting 17.16
Equity Weighting 82.84
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 7,982.207,024.507,836.206,939.906,665.076,401.126,147.625,904.165,670.34
Operating Cash Flow 1,585.801,204.501,499.201,356.201,261.161,211.211,163.251,117.181,072.94
Capital Expenditure -404.70-117.90-180.40-187.90-195.92-188.16-180.71-173.55-166.68
Free Cash Flow 1,181.101,086.601,318.801,168.301,065.241,023.05982.54943.63906.26
WACC
PV LFCF 1,065.24953852.60762.77682.41
SUM PV LFCF 4,020.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.35
Free cash flow (t + 1) 924.38
Terminal Value 17,278.14
Present Value of Terminal Value 12,119.56

Intrinsic Value

Enterprise Value 16,140.07
Net Debt 5,320.80
Equity Value 10,819.27
Shares Outstanding 210.30
Equity Value Per Share 51.45