Discounted Cash Flow (DCF) Analysis Unlevered

Becton, Dickinson and Company (BDX)

$251.79

+3.68 (+1.48%)

All numbers are in Millions, Currency in USD

Stock DCF: 254.18 | 251.79 | 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	15,983	17,290	17,117	20,248	18,870	19,750.43	20,671.93	21,636.43	22,645.94	23,702.54
Revenue (%)
EBITDA	3,857	4,068	3,667	4,984	4,410	4,624.30	4,840.06	5,065.88	5,302.24	5,549.63
EBITDA (%)
EBIT	1,879	1,815	1,513	2,711	2,181	2,213.62	2,316.90	2,425	2,538.15	2,656.57
EBIT (%)
Depreciation	1,978	2,253	2,154	2,273	2,229	2,410.68	2,523.15	2,640.88	2,764.09	2,893.06
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	1,157	566	2,845	2,295	1,014	1,731.78	1,812.58	1,897.15	1,985.66	2,078.31
Total Cash (%)
Account Receivables	2,319	2,345	2,398	2,497	2,191	2,608.02	2,729.71	2,857.07	2,990.37	3,129.90
Account Receivables (%)
Inventories	2,451	2,579	2,743	2,866	3,224	3,061.95	3,204.81	3,354.34	3,510.84	3,674.65
Inventories (%)
Accounts Payable	1,106	1,092	1,355	1,793	1.70	1,185.66	1,240.98	1,298.88	1,359.48	1,422.91
Accounts Payable (%)
Capital Expenditure	-895	-957	-810	-1,231	-973	-1,070.58	-1,120.53	-1,172.81	-1,227.54	-1,284.81
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 251.79
Beta	0.565
Diluted Shares Outstanding	292.09
Cost of Debt
Tax Rate	8.30
After-tax Cost of Debt	2.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.357
Total Debt	14,763
Total Equity	73,545.09
Total Capital	88,308.09
Debt Weighting	16.72
Equity Weighting	83.28
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	15,983	17,290	17,117	20,248	18,870	19,750.43	20,671.93	21,636.43	22,645.94	23,702.54
EBITDA	3,857	4,068	3,667	4,984	4,410	4,624.30	4,840.06	5,065.88	5,302.24	5,549.63
EBIT	1,879	1,815	1,513	2,711	2,181	2,213.62	2,316.90	2,425	2,538.15	2,656.57
Tax Rate	73.49%	-4.85%	11.27%	6.69%	8.30%	18.98%	18.98%	18.98%	18.98%	18.98%
EBIAT	498.18	1,902.97	1,342.50	2,529.62	1,999.96	1,793.48	1,877.15	1,964.74	2,056.41	2,152.35
Depreciation	1,978	2,253	2,154	2,273	2,229	2,410.68	2,523.15	2,640.88	2,764.09	2,893.06
Accounts Receivable	-	-26	-53	-99	306	-417.02	-121.68	-127.36	-133.30	-139.52
Inventories	-	-128	-164	-123	-358	162.05	-142.86	-149.53	-156.51	-163.81
Accounts Payable	-	-14	263	438	-1,791.30	1,183.96	55.32	57.90	60.60	63.43
Capital Expenditure	-895	-957	-810	-1,231	-973	-1,070.58	-1,120.53	-1,172.81	-1,227.54	-1,284.81
UFCF	1,581.18	3,030.97	2,732.50	3,787.62	1,412.66	4,062.55	3,070.55	3,213.81	3,363.76	3,520.70
WACC
PV UFCF						3,843.11	2,747.79	2,720.65	2,693.77	2,667.16
SUM PV UFCF										14,672.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.71
Free cash flow (t + 1)	3,591.12
Terminal Value	96,795.66
Present Value of Terminal Value	73,328.96

Intrinsic Value

Enterprise Value	88,001.44
Net Debt	13,757
Equity Value	74,244.44
Shares Outstanding	292.09
Equity Value Per Share	254.18