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	32,753	33,266	45,804	56,197	58,054	67,524.21	78,539.26	91,351.18	106,253.07	123,585.87
Revenue (%)
EBITDA	8,310	12,227	12,317	23,926	19,891	22,398.56	26,052.38	30,302.24	35,245.37	40,994.86
EBITDA (%)
EBIT	6,545	10,210	5,846	15,405	11,424	14,926.73	17,361.69	20,193.85	23,488.03	27,319.57
EBIT (%)
Depreciation	1,765	2,017	6,471	8,521	8,467	7,471.83	8,690.70	10,108.39	11,757.34	13,675.29
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	8,061	39,924	8,479	9,830	9,229	26,540.62	30,870.12	35,905.89	41,763.13	48,575.85
Total Cash (%)
Account Receivables	5,384	5,428	8,822	9,977	11,254	12,040.17	14,004.26	16,288.74	18,945.88	22,036.47
Account Receivables (%)
Inventories	1,605	1,813	3,310	3,128	3,579	3,957.98	4,603.63	5,354.61	6,228.10	7,244.07
Inventories (%)
Accounts Payable	1,546	1,452	2,276	2,882	2,784.03	3,238.19	3,766.42	4,380.83	5,095.47	5,926.68
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	32,753	33,266	45,804	56,197	58,054	67,524.21	78,539.26	91,351.18	106,253.07	123,585.87
EBITDA	8,310	12,227	12,317	23,926	19,891	22,398.56	26,052.38	30,302.24	35,245.37	40,994.86
EBIT	6,545	10,210	5,846	15,405	11,424	14,926.73	17,361.69	20,193.85	23,488.03	27,319.57
Tax Rate	-9.43%	6.46%	-35.84%	11.14%	12.18%	-3.10%	-3.10%	-3.10%	-3.10%	-3.10%
EBIAT	7,162.10	9,550.82	7,941.48	13,688.85	10,032.98	15,389.47	17,899.91	20,819.88	24,216.18	28,166.50
Depreciation	1,765	2,017	6,471	8,521	8,467	7,471.83	8,690.70	10,108.39	11,757.34	13,675.29
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	-1,497	182	-451	-378.98	-645.66	-750.98	-873.48	-1,015.97
Accounts Payable	-	-94	824	606	-97.97	454.15	528.24	614.41	714.63	831.21
Capital Expenditure	-638	-552	-798	-787	-695	-1,073.24	-1,248.31	-1,451.95	-1,688.80	-1,964.29
UFCF	8,289.10	10,669.82	9,547.48	21,055.85	15,979.01	21,077.07	23,260.79	27,055.27	31,468.73	36,602.15
WACC
PV UFCF						20,167.51	21,296.53	23,701.64	26,378.36	29,357.38
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