Discounted Cash Flow (DCF) Analysis Levered
Zai Lab Limited (ZLAB)
$33.04
+0.55 (+1.69%)
All numbers are in Millions, Currency in USD
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 | 0.13 | 12.99 | 48.96 | 144.31 | 215.04 | 5,833.80 | 158,264.47 | 4,293,539.85 | 116,478,985.71 | 3,159,946,012.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -97.54 | -191.01 | -216.06 | -549.23 | -367.64 | -907,864.09 | -24,629,348.29 | -668,166,969.57 | -18,126,630,637.76 | -491,755,434,260.76 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -10.12 | -15.24 | -10.67 | -18.95 | -24.98 | -93,105.33 | -2,525,844.54 | -68,523,367.73 | -1,858,963,153.56 | -50,431,613,636.34 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -107.66 | -206.25 | -226.72 | -568.18 | -392.63 | -1,000,969.42 | -27,155,192.82 | -736,690,337.29 | -19,985,593,791.31 | -542,187,047,897.10 |
Weighted Average Cost Of Capital
| Share price | $ 33.04 |
|---|---|
| Beta | 1.153 |
| Diluted Shares Outstanding | 95.81 |
| Cost of Debt | |
| Tax Rate | -0.05 |
| After-tax Cost of Debt | 71.50% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.056 |
| Total Debt | 20.39 |
| Total Equity | 3,165.45 |
| Total Capital | 3,185.85 |
| Debt Weighting | 0.64 |
| Equity Weighting | 99.36 |
| 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 | 0.13 | 12.99 | 48.96 | 144.31 | 215.04 | 5,833.80 | 158,264.47 | 4,293,539.85 | 116,478,985.71 | 3,159,946,012.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -97.54 | -191.01 | -216.06 | -549.23 | -367.64 | -907,864.09 | -24,629,348.29 | -668,166,969.57 | -18,126,630,637.76 | -491,755,434,260.76 |
| Capital Expenditure | -10.12 | -15.24 | -10.67 | -18.95 | -24.98 | -93,105.33 | -2,525,844.54 | -68,523,367.73 | -1,858,963,153.56 | -50,431,613,636.34 |
| Free Cash Flow | -107.66 | -206.25 | -226.72 | -568.18 | -392.63 | -1,000,969.42 | -27,155,192.82 | -736,690,337.29 | -19,985,593,791.31 | -542,187,047,897.10 |
| WACC | ||||||||||
| PV LFCF | -581,953.31 | -14,423,304.90 | -357,471,500.32 | -8,859,680,526.61 | -219,580,970,686.67 | |||||
| SUM PV LFCF | -359,549,059,579.77 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.46 |
| Free cash flow (t + 1) | -553,030,788,855.04 |
| Terminal Value | -7,413,281,351,944.24 |
| Present Value of Terminal Value | -4,717,731,974,201.38 |
Intrinsic Value
| Enterprise Value | -5,077,281,033,781.15 |
|---|---|
| Net Debt | -988.08 |
| Equity Value | -5,077,281,032,793.08 |
| Shares Outstanding | 95.81 |
| Equity Value Per Share | -52,995,044,092.56 |