Discounted Cash Flow (DCF) Analysis Unlevered

Becton, Dickinson and Company (BDX)

$250.92

+8.38 (+3.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 396.40 | 250.92 | 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 12,09315,98317,29017,11720,24823,165.5326,503.4630,322.3434,691.4839,690.18
Revenue (%)
EBITDA 2,5853,8574,0683,6674,9845,331.506,099.716,978.627,984.179,134.60
EBITDA (%)
EBIT 1,4971,8791,8151,5132,7112,634.423,014.023,448.313,945.174,513.63
EBIT (%)
Depreciation 1,0881,9782,2532,1542,2732,697.073,085.693,530.314,038.994,620.97
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 14,2161,1575662,8452,2957,228.738,270.329,461.9910,825.3712,385.20
Total Cash (%)
Account Receivables 1,7442,3192,3452,3982,4973,189.203,648.734,174.484,775.985,464.15
Account Receivables (%)
Inventories 1,8182,4512,5792,7432,8663,496.344,000.124,576.505,235.935,990.37
Inventories (%)
Accounts Payable 7971,1061,0921,3551,7931,695.601,939.922,219.452,539.252,905.13
Accounts Payable (%)
Capital Expenditure -727-895-957-810-1,231-1,295.33-1,481.98-1,695.52-1,939.82-2,219.33
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 250.92
Beta 0.661
Diluted Shares Outstanding 292.09
Cost of Debt
Tax Rate 6.69
After-tax Cost of Debt 2.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.243
Total Debt 17,610
Total Equity 73,290.97
Total Capital 90,900.97
Debt Weighting 19.37
Equity Weighting 80.63
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 12,09315,98317,29017,11720,24823,165.5326,503.4630,322.3434,691.4839,690.18
EBITDA 2,5853,8574,0683,6674,9845,331.506,099.716,978.627,984.179,134.60
EBIT 1,4971,8791,8151,5132,7112,634.423,014.023,448.313,945.174,513.63
Tax Rate -12.70%73.49%-4.85%11.27%6.69%14.78%14.78%14.78%14.78%14.78%
EBIAT 1,687.19498.181,902.971,342.502,529.622,245.092,568.582,938.693,362.123,846.57
Depreciation 1,0881,9782,2532,1542,2732,697.073,085.693,530.314,038.994,620.97
Accounts Receivable --575-26-53-99-692.20-459.53-525.75-601.50-688.17
Inventories --633-128-164-123-630.34-503.79-576.38-659.43-754.44
Accounts Payable -309-14263438-97.40244.32279.52319.80365.88
Capital Expenditure -727-895-957-810-1,231-1,295.33-1,481.98-1,695.52-1,939.82-2,219.33
UFCF 2,048.19682.183,030.972,732.503,787.622,226.893,453.303,950.884,520.165,171.47
WACC
PV UFCF 2,110.603,102.033,363.673,647.373,955
SUM PV UFCF 16,178.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.51
Free cash flow (t + 1) 5,274.90
Terminal Value 150,282.13
Present Value of Terminal Value 114,931.54

Intrinsic Value

Enterprise Value 131,110.21
Net Debt 15,327
Equity Value 115,783.21
Shares Outstanding 292.09
Equity Value Per Share 396.40