Discounted Cash Flow (DCF) Analysis Unlevered

Danaher Corporation (DHR)

$237.52

+2.87 (+1.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 284.38 | 237.52 | 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	19,893	17,911.10	22,284	29,453	31,471	35,678.23	40,447.90	45,855.21	51,985.40	58,935.11
Revenue (%)
EBITDA	4,757.90	5,179.30	6,545	10,090	10,725	10,742.14	12,178.21	13,806.27	15,651.97	17,744.42
EBITDA (%)
EBIT	3,450.20	3,989.80	4,770	7,922	8,503	8,201.74	9,298.20	10,541.24	11,950.45	13,548.06
EBIT (%)
Depreciation	1,307.70	1,189.50	1,775	2,168	2,222	2,540.40	2,880.01	3,265.03	3,701.52	4,196.36
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	787.80	19,912.30	6,035	2,586	5,995	12,133.79	13,755.90	15,594.87	17,679.69	20,043.21
Total Cash (%)
Account Receivables	3,489.60	3,191.40	4,045	4,631	4,918	6,055.47	6,865.01	7,782.76	8,823.20	10,002.74
Account Receivables (%)
Inventories	1,910.10	1,628.30	2,292	2,767	3,110	3,443.31	3,903.63	4,425.49	5,017.11	5,687.83
Inventories (%)
Accounts Payable	1,712.80	1,514.40	2,049	2,569	2,296	3,016.81	3,420.12	3,877.34	4,395.68	4,983.33
Accounts Payable (%)
Capital Expenditure	-655.70	-635.50	-791	-1,294	-1,152	-1,316.37	-1,492.35	-1,691.86	-1,918.03	-2,174.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 237.52
Beta	0.799
Diluted Shares Outstanding	736.80
Cost of Debt
Tax Rate	13.06
After-tax Cost of Debt	0.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.556
Total Debt	20,739
Total Equity	175,004.74
Total Capital	195,743.74
Debt Weighting	10.59
Equity Weighting	89.41
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	19,893	17,911.10	22,284	29,453	31,471	35,678.23	40,447.90	45,855.21	51,985.40	58,935.11
EBITDA	4,757.90	5,179.30	6,545	10,090	10,725	10,742.14	12,178.21	13,806.27	15,651.97	17,744.42
EBIT	3,450.20	3,989.80	4,770	7,922	8,503	8,201.74	9,298.20	10,541.24	11,950.45	13,548.06
Tax Rate	19.49%	8.99%	18.89%	15.33%	13.06%	15.15%	15.15%	15.15%	15.15%	15.15%
EBIAT	2,777.62	3,631.17	3,869.06	6,707.32	7,392.44	6,958.95	7,889.26	8,943.94	10,139.62	11,495.15
Depreciation	1,307.70	1,189.50	1,775	2,168	2,222	2,540.40	2,880.01	3,265.03	3,701.52	4,196.36
Accounts Receivable	-	298.20	-853.60	-586	-287	-1,137.47	-809.53	-917.75	-1,040.44	-1,179.54
Inventories	-	281.80	-663.70	-475	-343	-333.31	-460.32	-521.86	-591.63	-670.72
Accounts Payable	-	-198.40	534.60	520	-273	720.81	403.31	457.22	518.35	587.64
Capital Expenditure	-655.70	-635.50	-791	-1,294	-1,152	-1,316.37	-1,492.35	-1,691.86	-1,918.03	-2,174.45
UFCF	3,429.62	4,566.77	3,870.36	7,040.32	7,559.44	7,433.01	8,410.38	9,534.73	10,809.38	12,254.44
WACC
PV UFCF						6,956.49	7,366.59	7,816	8,292.83	8,798.75
SUM PV UFCF										39,230.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.85
Free cash flow (t + 1)	12,499.53
Terminal Value	257,722.34
Present Value of Terminal Value	185,045.88

Intrinsic Value

Enterprise Value	224,276.54
Net Debt	14,744
Equity Value	209,532.54
Shares Outstanding	736.80
Equity Value Per Share	284.38