Discounted Cash Flow (DCF) Analysis Unlevered

AbbVie Inc. (ABBV)

$137.56

-1.06 (-0.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 708.57 | 137.56 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 32,75333,26645,80456,19758,05467,524.2178,539.2691,351.18106,253.07123,585.87
Revenue (%)
EBITDA 8,31012,22712,31723,92619,89122,398.5626,052.3830,302.2435,245.3740,994.86
EBITDA (%)
EBIT 6,54510,2105,84615,40511,42414,926.7317,361.6920,193.8523,488.0327,319.57
EBIT (%)
Depreciation 1,7652,0176,4718,5218,4677,471.838,690.7010,108.3911,757.3413,675.29
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 8,06139,9248,4799,8309,22926,540.6230,870.1235,905.8941,763.1348,575.85
Total Cash (%)
Account Receivables 5,3845,4288,8229,97711,25412,040.1714,004.2616,288.7418,945.8822,036.47
Account Receivables (%)
Inventories 1,6051,8133,3103,1283,5793,957.984,603.635,354.616,228.107,244.07
Inventories (%)
Accounts Payable 1,5461,4522,2762,8822,784.033,238.193,766.424,380.835,095.475,926.68
Accounts Payable (%)
Capital Expenditure -638-552-798-787-695-1,073.24-1,248.31-1,451.95-1,688.80-1,964.29
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 137.56
Beta 0.551
Diluted Shares Outstanding 1,778
Cost of Debt
Tax Rate 12.18
After-tax Cost of Debt -2.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.411
Total Debt 63,271
Total Equity 244,581.68
Total Capital 307,852.68
Debt Weighting 20.55
Equity Weighting 79.45
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 32,75333,26645,80456,19758,05467,524.2178,539.2691,351.18106,253.07123,585.87
EBITDA 8,31012,22712,31723,92619,89122,398.5626,052.3830,302.2435,245.3740,994.86
EBIT 6,54510,2105,84615,40511,42414,926.7317,361.6920,193.8523,488.0327,319.57
Tax Rate -9.43%6.46%-35.84%11.14%12.18%-3.10%-3.10%-3.10%-3.10%-3.10%
EBIAT 7,162.109,550.827,941.4813,688.8510,032.9815,389.4717,899.9120,819.8824,216.1828,166.50
Depreciation 1,7652,0176,4718,5218,4677,471.838,690.7010,108.3911,757.3413,675.29
Accounts Receivable --44-3,394-1,155-1,277-786.17-1,964.08-2,284.48-2,657.14-3,090.59
Inventories --208-1,497182-451-378.98-645.66-750.98-873.48-1,015.97
Accounts Payable --94824606-97.97454.15528.24614.41714.63831.21
Capital Expenditure -638-552-798-787-695-1,073.24-1,248.31-1,451.95-1,688.80-1,964.29
UFCF 8,289.1010,669.829,547.4821,055.8515,979.0121,077.0723,260.7927,055.2731,468.7336,602.15
WACC
PV UFCF 20,167.5121,296.5323,701.6426,378.3629,357.38
SUM PV UFCF 120,901.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.51
Free cash flow (t + 1) 37,334.19
Terminal Value 1,487,417.84
Present Value of Terminal Value 1,193,009.08

Intrinsic Value

Enterprise Value 1,313,910.50
Net Debt 54,070
Equity Value 1,259,840.50
Shares Outstanding 1,778
Equity Value Per Share 708.57