Discounted Cash Flow (DCF) Analysis Unlevered

Baxter International Inc. (BAX)

$73.665

+0.64 (+0.87%)
All numbers are in Millions, Currency in USD
Stock DCF: 114.95 | 73.665 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,56111,12711,36211,67312,78413,414.4514,075.9914,770.1515,498.5516,262.87
Revenue (%)
EBITDA 2,0562,5651,8602,2602,5622,637.062,767.112,903.573,046.763,197.02
EBITDA (%)
EBIT 1,2951,7801,0711,4371,6721,692.221,775.681,863.251,955.132,051.55
EBIT (%)
Depreciation 761785789823890944.84991.431,040.331,091.631,145.46
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 3,3941,8323,3353,7302,9513,568.013,743.973,928.614,122.354,325.64
Total Cash (%)
Account Receivables 1,7931,8121,8962,0772,6292,369.192,486.032,608.632,737.272,872.27
Account Receivables (%)
Inventories 1,4751,6531,6531,9162,4532,118.752,223.242,332.882,447.932,568.65
Inventories (%)
Accounts Payable 9201,0048921,0431,2461,187.631,246.201,307.661,372.141,439.81
Accounts Payable (%)
Capital Expenditure -634-681-696-709-743-808.49-848.36-890.20-934.10-980.16
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 73.665
Beta 0.596
Diluted Shares Outstanding 517
Cost of Debt
Tax Rate 13.07
After-tax Cost of Debt 0.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.688
Total Debt 18,310
Total Equity 38,084.81
Total Capital 56,394.81
Debt Weighting 32.47
Equity Weighting 67.53
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,56111,12711,36211,67312,78413,414.4514,075.9914,770.1515,498.5516,262.87
EBITDA 2,0562,5651,8602,2602,5622,637.062,767.112,903.573,046.763,197.02
EBIT 1,2951,7801,0711,4371,6721,692.221,775.681,863.251,955.132,051.55
Tax Rate 41.08%4.08%-3.20%14.71%13.07%13.95%13.95%13.95%13.95%13.95%
EBIAT 762.951,707.451,105.231,225.681,453.521,456.201,528.021,603.371,682.441,765.41
Depreciation 761785789823890944.84991.431,040.331,091.631,145.46
Accounts Receivable --19-84-181-552259.81-116.84-122.60-128.65-134.99
Inventories --178-0-263-537334.25-104.49-109.64-115.05-120.72
Accounts Payable -84-112151203-58.3758.5761.4664.4967.67
Capital Expenditure -634-681-696-709-743-808.49-848.36-890.20-934.10-980.16
UFCF 889.951,698.451,002.231,046.68714.522,128.241,508.331,582.721,660.771,742.67
WACC
PV UFCF 2,043.241,390.261,400.561,410.931,421.38
SUM PV UFCF 7,666.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.16
Free cash flow (t + 1) 1,777.52
Terminal Value 82,292.82
Present Value of Terminal Value 67,120.79

Intrinsic Value

Enterprise Value 74,787.16
Net Debt 15,359
Equity Value 59,428.16
Shares Outstanding 517
Equity Value Per Share 114.95