Discounted Cash Flow (DCF) Analysis Unlevered

Bristol-Myers Squibb Company (BMY)

$66.98

-0.26 (-0.39%)

All numbers are in Millions, Currency in USD

Stock DCF: 356.36 | 66.98 | 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	22,561	26,145	42,518	46,385	46,159	56,212.13	68,454.77	83,363.77	101,519.86	123,630.22
Revenue (%)
EBITDA	6,761	7,356	4,909	20,098	18,522	17,212.60	20,961.39	25,526.64	31,086.18	37,856.54
EBITDA (%)
EBIT	6,124	5,610	-5,471	9,412	8,246	8,306.95	10,116.15	12,319.39	15,002.47	18,269.91
EBIT (%)
Depreciation	637	1,746	10,380	10,686	10,276	8,905.64	10,845.23	13,207.25	16,083.71	19,586.63
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	8,884	15,393	16,450	17,221	9,253	21,823.22	26,576.17	32,364.29	39,413.02	47,996.92
Total Cash (%)
Account Receivables	5,965	7,685	8,501	12,516	9,886	13,966.15	17,007.89	20,712.10	25,223.06	30,716.48
Account Receivables (%)
Inventories	1,195	4,293	2,074	2,095	2,339	4,067.34	4,953.18	6,031.95	7,345.67	8,945.50
Inventories (%)
Accounts Payable	1,892	2,445	2,713	2,949	3,040	4,166.70	5,074.18	6,179.30	7,525.11	9,164.03
Accounts Payable (%)
Capital Expenditure	-951	-836	-753	-973	-1,118	-1,540.61	-1,876.14	-2,284.76	-2,782.36	-3,388.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 66.98
Beta	0.448
Diluted Shares Outstanding	2,245
Cost of Debt
Tax Rate	17.97
After-tax Cost of Debt	2.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.520
Total Debt	39,320
Total Equity	150,370.10
Total Capital	189,690.10
Debt Weighting	20.73
Equity Weighting	79.27
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	22,561	26,145	42,518	46,385	46,159	56,212.13	68,454.77	83,363.77	101,519.86	123,630.22
EBITDA	6,761	7,356	4,909	20,098	18,522	17,212.60	20,961.39	25,526.64	31,086.18	37,856.54
EBIT	6,124	5,610	-5,471	9,412	8,246	8,306.95	10,116.15	12,319.39	15,002.47	18,269.91
Tax Rate	17.56%	30.87%	-31.20%	13.63%	17.97%	9.77%	9.77%	9.77%	9.77%	9.77%
EBIAT	5,048.61	3,877.95	-7,178.15	8,128.86	6,764.22	7,495.63	9,128.14	11,116.18	13,537.22	16,485.53
Depreciation	637	1,746	10,380	10,686	10,276	8,905.64	10,845.23	13,207.25	16,083.71	19,586.63
Accounts Receivable	-	-1,720	-816	-4,015	2,630	-4,080.15	-3,041.74	-3,704.21	-4,510.96	-5,493.42
Inventories	-	-3,098	2,219	-21	-244	-1,728.34	-885.84	-1,078.77	-1,313.72	-1,599.84
Accounts Payable	-	553	268	236	91	1,126.70	907.48	1,105.12	1,345.81	1,638.92
Capital Expenditure	-951	-836	-753	-973	-1,118	-1,540.61	-1,876.14	-2,284.76	-2,782.36	-3,388.34
UFCF	4,734.61	522.95	4,119.85	14,041.86	18,399.22	10,178.87	15,077.13	18,360.83	22,359.69	27,229.49
WACC
PV UFCF						9,702.48	13,698.87	15,901.63	18,458.58	21,426.69
SUM PV UFCF										79,188.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.91
Free cash flow (t + 1)	27,774.08
Terminal Value	954,435.72
Present Value of Terminal Value	751,038.58

Intrinsic Value

Enterprise Value	830,226.83
Net Debt	30,197
Equity Value	800,029.83
Shares Outstanding	2,245
Equity Value Per Share	356.36