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	30,578	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	7,011	7,761	8,865	12,282	10,694	12,051.21	13,214.73	14,490.58	15,889.62	17,423.73
EBITDA (%)
EBIT	3,733	4,747	5,538	8,744	7,427	7,697.34	8,440.50	9,255.42	10,149.01	11,128.87
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	6,218	7,830.01	8,585.98	9,414.94	10,323.93	11,320.68
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	$ 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	30,578	31,904	34,608	43,075	43,653	47,867.61	52,489.12	57,556.84	63,113.83	69,207.34
EBITDA	7,011	7,761	8,865	12,282	10,694	12,051.21	13,214.73	14,490.58	15,889.62	17,423.73
EBIT	3,733	4,747	5,538	8,744	7,427	7,697.34	8,440.50	9,255.42	10,149.01	11,128.87
Tax Rate	17.58%	9.57%	9.52%	13.88%	16.53%	13.42%	13.42%	13.42%	13.42%	13.42%
EBIAT	3,076.83	4,292.91	5,010.73	7,530	6,199.30	6,664.69	7,308.16	8,013.74	8,787.45	9,635.86
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	269	-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	-	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	4,960.83	5,182.91	5,169.73	9,427	7,141.30	7,252.60	8,628.42	9,461.47	10,374.96	11,376.64
WACC
PV UFCF						6,836.27	7,666.24	7,923.83	8,190.09	8,465.29
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