Discounted Cash Flow (DCF) Analysis Levered

Zoetis Inc. (ZTS)

$149.4

+0.80 (+0.54%)
All numbers are in Millions, Currency in USD
Stock DCF: 98.01 | 149.4 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,3075,8256,2606,6757,7768,560.459,424.0310,374.7411,421.3512,573.54
Revenue (%)
Operating Cash Flow 1,3461,7901,7952,1262,2132,483.832,734.403,010.253,313.933,648.24
Operating Cash Flow (%)
Capital Expenditure -224-338-460-453-477-518.63-570.95-628.55-691.96-761.77
Capital Expenditure (%)
Free Cash Flow 1,1221,4521,3351,6731,7361,965.202,163.452,381.702,621.972,886.47

Weighted Average Cost Of Capital

Share price $ 149.4
Beta 0.763
Diluted Shares Outstanding 478.57
Cost of Debt
Tax Rate 18.13
After-tax Cost of Debt 2.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.564
Total Debt 6,743
Total Equity 71,498.21
Total Capital 78,241.21
Debt Weighting 8.62
Equity Weighting 91.38
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,3075,8256,2606,6757,7768,560.459,424.0310,374.7411,421.3512,573.54
Operating Cash Flow 1,3461,7901,7952,1262,2132,483.832,734.403,010.253,313.933,648.24
Capital Expenditure -224-338-460-453-477-518.63-570.95-628.55-691.96-761.77
Free Cash Flow 1,1221,4521,3351,6731,7361,965.202,163.452,381.702,621.972,886.47
WACC
PV LFCF 1,834.061,884.351,936.021,989.112,043.65
SUM PV LFCF 9,687.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.15
Free cash flow (t + 1) 2,944.20
Terminal Value 57,168.95
Present Value of Terminal Value 40,476.17

Intrinsic Value

Enterprise Value 50,163.36
Net Debt 3,261
Equity Value 46,902.36
Shares Outstanding 478.57
Equity Value Per Share 98.01