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 15,98317,29017,11720,24818,87019,750.4320,671.9321,636.4322,645.9423,702.54
Revenue (%)
EBITDA 3,8574,0683,6674,9844,4104,624.304,840.065,065.885,302.245,549.63
EBITDA (%)
EBIT 1,8791,8151,5132,7112,1812,213.622,316.902,4252,538.152,656.57
EBIT (%)
Depreciation 1,9782,2532,1542,2732,2292,410.682,523.152,640.882,764.092,893.06
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 1,1575662,8452,2951,0141,731.781,812.581,897.151,985.662,078.31
Total Cash (%)
Account Receivables 2,3192,3452,3982,4972,1912,608.022,729.712,857.072,990.373,129.90
Account Receivables (%)
Inventories 2,4512,5792,7432,8663,2243,061.953,204.813,354.343,510.843,674.65
Inventories (%)
Accounts Payable 1,1061,0921,3551,7931.701,185.661,240.981,298.881,359.481,422.91
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 15,98317,29017,11720,24818,87019,750.4320,671.9321,636.4322,645.9423,702.54
EBITDA 3,8574,0683,6674,9844,4104,624.304,840.065,065.885,302.245,549.63
EBIT 1,8791,8151,5132,7112,1812,213.622,316.902,4252,538.152,656.57
Tax Rate 73.49%-4.85%11.27%6.69%8.30%18.98%18.98%18.98%18.98%18.98%
EBIAT 498.181,902.971,342.502,529.621,999.961,793.481,877.151,964.742,056.412,152.35
Depreciation 1,9782,2532,1542,2732,2292,410.682,523.152,640.882,764.092,893.06
Accounts Receivable --26-53-99306-417.02-121.68-127.36-133.30-139.52
Inventories --128-164-123-358162.05-142.86-149.53-156.51-163.81
Accounts Payable --14263438-1,791.301,183.9655.3257.9060.6063.43
Capital Expenditure -895-957-810-1,231-973-1,070.58-1,120.53-1,172.81-1,227.54-1,284.81
UFCF 1,581.183,030.972,732.503,787.621,412.664,062.553,070.553,213.813,363.763,520.70
WACC
PV UFCF 3,843.112,747.792,720.652,693.772,667.16
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