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 30,57831,90434,60843,07543,65347,867.6152,489.1257,556.8463,113.8369,207.34
Revenue (%)
EBITDA 5,9676,6597,59210,74910,69610,701.2511,734.4312,867.3614,109.6815,471.94
EBITDA (%)
EBIT 2,6893,6454,2657,2117,4296,347.386,960.217,632.208,369.079,177.09
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 5,1825,4256,4146,4878,8818,414.039,226.3910,117.1811,093.9712,165.07
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 $ 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 30,57831,90434,60843,07543,65347,867.6152,489.1257,556.8463,113.8369,207.34
EBITDA 5,9676,6597,59210,74910,69610,701.2511,734.4312,867.3614,109.6815,471.94
EBIT 2,6893,6454,2657,2117,4296,347.386,960.217,632.208,369.079,177.09
Tax Rate 17.58%9.57%9.52%13.88%16.53%13.42%13.42%13.42%13.42%13.42%
EBIAT 2,216.343,296.323,858.936,209.846,200.975,495.846,026.456,608.297,246.317,945.92
Depreciation 3,2783,0143,3273,5383,2674,353.874,774.225,235.165,740.616,294.85
Accounts Receivable --243-989-73-2,394466.97-812.36-890.79-976.79-1,071.10
Inventories --520-696-145-1,016-197-615.01-674.39-739.50-810.90
Accounts Payable -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 4,100.344,186.324,017.938,106.844,479.978,162.727,290.327,994.198,766.019,612.35
WACC
PV UFCF 7,615.196,345.106,4916,640.266,792.95
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