Discounted Cash Flow (DCF) Analysis Unlevered

Boston Scientific Corporation (BSX)

$65.75

-0.47 (-0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 76.09 | 65.75 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 10,7359,91311,88812,68214,24015,351.8016,550.4017,842.5819,235.6520,737.49
Revenue (%)
EBITDA 2,0821,8332,7842,8002,3433,065.333,304.663,562.673,840.834,140.70
EBITDA (%)
EBIT 1,0717101,6911,6641,1471,613.141,739.091,874.872,021.252,179.06
EBIT (%)
Depreciation 1,0111,1231,0931,1361,1961,452.191,565.571,687.801,819.581,961.64
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 2171,7341,9259288651,507.491,625.191,752.081,888.882,036.35
Total Cash (%)
Account Receivables 1,9331,5311,7781,9702,2282,443.612,634.392,840.083,061.823,300.87
Account Receivables (%)
Inventories 1,5791,3511,6101,8672,4842,273.482,450.982,642.342,848.653,071.06
Inventories (%)
Accounts Payable 542513794862942930.781,003.461,081.801,166.261,257.32
Accounts Payable (%)
Capital Expenditure -461-376-554-612-711-692.86-746.96-805.28-868.15-935.93
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 65.75
Beta 0.780
Diluted Shares Outstanding 1,463.50
Cost of Debt
Tax Rate 20.91
After-tax Cost of Debt 3.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.985
Total Debt 9,102
Total Equity 96,225.13
Total Capital 105,327.13
Debt Weighting 8.64
Equity Weighting 91.36
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 10,7359,91311,88812,68214,24015,351.8016,550.4017,842.5819,235.6520,737.49
EBITDA 2,0821,8332,7842,8002,3433,065.333,304.663,562.673,840.834,140.70
EBIT 1,0717101,6911,6641,1471,613.141,739.091,874.872,021.252,179.06
Tax Rate -584.13%-1.45%8.36%43.65%20.91%-102.53%-102.53%-102.53%-102.53%-102.53%
EBIAT 7,327.07720.291,549.56937.73907.203,267.153,522.233,797.234,093.714,413.32
Depreciation 1,0111,1231,0931,1361,1961,452.191,565.571,687.801,819.581,961.64
Accounts Receivable -402-247-192-258-215.61-190.79-205.68-221.74-239.05
Inventories -228-259-257-617210.52-177.50-191.36-206.30-222.41
Accounts Payable --292816880-11.2272.6778.3584.4691.06
Capital Expenditure -461-376-554-612-711-692.86-746.96-805.28-868.15-935.93
UFCF 7,877.072,068.291,863.561,080.73597.204,010.174,045.224,361.054,701.555,068.62
WACC
PV UFCF 3,727.273,494.613,501.673,508.763,515.85
SUM PV UFCF 17,748.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.59
Free cash flow (t + 1) 5,271.37
Terminal Value 146,834.77
Present Value of Terminal Value 101,851.95

Intrinsic Value

Enterprise Value 119,600.11
Net Debt 8,237
Equity Value 111,363.11
Shares Outstanding 1,463.50
Equity Value Per Share 76.09