Discounted Cash Flow (DCF) Analysis Unlevered

Abbott Laboratories (ABT)

$102

+0.29 (+0.29%)
All numbers are in Millions, Currency in USD
Stock DCF: 132.02 | 102 | 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 30,57831,90434,60843,07543,65347,867.6152,489.1257,556.8463,113.8369,207.34
Revenue (%)
EBITDA 7,0117,7618,86512,28210,69412,051.2113,214.7314,490.5815,889.6217,423.73
EBITDA (%)
EBIT 3,7334,7475,5388,7447,4277,697.348,440.509,255.4210,149.0111,128.87
EBIT (%)
Depreciation 3,2783,0143,3273,5383,2674,353.874,774.225,235.165,740.616,294.85
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 4,0864,1407,14810,24910,1709,007.149,876.7610,830.3511,875.9913,022.59
Total Cash (%)
Account Receivables 5,1825,4256,4146,4876,2187,830.018,585.989,414.9410,323.9311,320.68
Account Receivables (%)
Inventories 3,7964,3165,0125,1576,1736,3706,985.017,659.398,398.899,209.79
Inventories (%)
Accounts Payable 2,9753,2523,9464,4084,6074,988.885,470.555,998.726,577.897,212.97
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 $ 102
Beta 0.663
Diluted Shares Outstanding 1,786
Cost of Debt
Tax Rate 16.53
After-tax Cost of Debt 1.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.728
Total Debt 24,295
Total Equity 182,172
Total Capital 206,467
Debt Weighting 11.77
Equity Weighting 88.23
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 30,57831,90434,60843,07543,65347,867.6152,489.1257,556.8463,113.8369,207.34
EBITDA 7,0117,7618,86512,28210,69412,051.2113,214.7314,490.5815,889.6217,423.73
EBIT 3,7334,7475,5388,7447,4277,697.348,440.509,255.4210,149.0111,128.87
Tax Rate 17.58%9.57%9.52%13.88%16.53%13.42%13.42%13.42%13.42%13.42%
EBIAT 3,076.834,292.915,010.737,5306,199.306,664.697,308.168,013.748,787.459,635.86
Depreciation 3,2783,0143,3273,5383,2674,353.874,774.225,235.165,740.616,294.85
Accounts Receivable --243-989-73269-1,612.01-755.97-828.96-908.99-996.75
Inventories --520-696-145-1,016-197-615.01-674.39-739.50-810.90
Accounts Payable -277694462199381.88481.67528.17579.16635.08
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 4,960.835,182.915,169.739,4277,141.307,252.608,628.429,461.4710,374.9611,376.64
WACC
PV UFCF 6,836.277,666.247,923.838,190.098,465.29
SUM PV UFCF 39,081.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.09
Free cash flow (t + 1) 11,604.17
Terminal Value 283,720.58
Present Value of Terminal Value 211,114.75

Intrinsic Value

Enterprise Value 250,196.47
Net Debt 14,413
Equity Value 235,783.47
Shares Outstanding 1,786
Equity Value Per Share 132.02