Discounted Cash Flow (DCF) Analysis Unlevered

Abbott Laboratories (ABT)

$96.71

-1.41 (-1.44%)

All numbers are in Millions, Currency in USD

Stock DCF: 89.34 | 96.71 | overvalue

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	30,578	31,904	34,608	43,075	43,653	47,867.61	52,489.12	57,556.84	63,113.83	69,207.34
Revenue (%)
EBITDA	5,967	6,659	7,592	10,749	10,696	10,701.25	11,734.43	12,867.36	14,109.68	15,471.94
EBITDA (%)
EBIT	2,689	3,645	4,265	7,211	7,429	6,347.38	6,960.21	7,632.20	8,369.07	9,177.09
EBIT (%)
Depreciation	3,278	3,014	3,327	3,538	3,267	4,353.87	4,774.22	5,235.16	5,740.61	6,294.85
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	4,086	4,140	7,148	10,249	10,170	9,007.14	9,876.76	10,830.35	11,875.99	13,022.59
Total Cash (%)
Account Receivables	5,182	5,425	6,414	6,487	8,881	8,414.03	9,226.39	10,117.18	11,093.97	12,165.07
Account Receivables (%)
Inventories	3,796	4,316	5,012	5,157	6,173	6,370	6,985.01	7,659.39	8,398.89	9,209.79
Inventories (%)
Accounts Payable	2,975	3,252	3,946	4,408	4,607	4,988.88	5,470.55	5,998.72	6,577.89	7,212.97
Accounts Payable (%)
Capital Expenditure	-1,394	-1,638	-2,177	-1,885	-1,777	-2,338.84	-2,564.65	-2,812.26	-3,083.78	-3,381.51
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 96.71
Beta	0.673
Diluted Shares Outstanding	1,786
Cost of Debt
Tax Rate	16.53
After-tax Cost of Debt	1.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.751
Total Debt	17,716
Total Equity	172,724.06
Total Capital	190,440.06
Debt Weighting	9.30
Equity Weighting	90.70
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	30,578	31,904	34,608	43,075	43,653	47,867.61	52,489.12	57,556.84	63,113.83	69,207.34
EBITDA	5,967	6,659	7,592	10,749	10,696	10,701.25	11,734.43	12,867.36	14,109.68	15,471.94
EBIT	2,689	3,645	4,265	7,211	7,429	6,347.38	6,960.21	7,632.20	8,369.07	9,177.09
Tax Rate	17.58%	9.57%	9.52%	13.88%	16.53%	13.42%	13.42%	13.42%	13.42%	13.42%
EBIAT	2,216.34	3,296.32	3,858.93	6,209.84	6,200.97	5,495.84	6,026.45	6,608.29	7,246.31	7,945.92
Depreciation	3,278	3,014	3,327	3,538	3,267	4,353.87	4,774.22	5,235.16	5,740.61	6,294.85
Accounts Receivable	-	-243	-989	-73	-2,394	466.97	-812.36	-890.79	-976.79	-1,071.10
Inventories	-	-520	-696	-145	-1,016	-197	-615.01	-674.39	-739.50	-810.90
Accounts Payable	-	277	694	462	199	381.88	481.67	528.17	579.16	635.08
Capital Expenditure	-1,394	-1,638	-2,177	-1,885	-1,777	-2,338.84	-2,564.65	-2,812.26	-3,083.78	-3,381.51
UFCF	4,100.34	4,186.32	4,017.93	8,106.84	4,479.97	8,162.72	7,290.32	7,994.19	8,766.01	9,612.35
WACC
PV UFCF						7,615.19	6,345.10	6,491	6,640.26	6,792.95
SUM PV UFCF										33,884.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.19
Free cash flow (t + 1)	9,804.60
Terminal Value	188,913.29
Present Value of Terminal Value	133,503.04

Intrinsic Value

Enterprise Value	167,387.54
Net Debt	7,834
Equity Value	159,553.54
Shares Outstanding	1,786
Equity Value Per Share	89.34