Discounted Cash Flow (DCF) Analysis Unlevered

Henry Schein, Inc. (HSIC)

$77.29

+1.53 (+2.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 120.45 | 77.29 | 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 12,461.5413,2029,985.8010,119.1412,401.0212,570.4812,742.2512,916.3713,092.8713,271.78
Revenue (%)
EBITDA 1,015.53977.721,089.98726.081,065.711,061.941,076.451,091.161,106.071,121.19
EBITDA (%)
EBIT 822.46770.16905.04540.54856.18848.33859.92871.67883.58895.65
EBIT (%)
Depreciation 193.07207.56184.94185.54209.53213.62216.53219.49222.49225.53
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 174.6680.21106.10421.18117.96205.78208.59211.44214.33217.26
Total Cash (%)
Account Receivables 1,470.051,603.711,246.251,424.791,451.831,564.061,585.441,607.101,629.061,651.32
Account Receivables (%)
Inventories 1,933.801,970.741,428.801,512.501,861.141,878.251,903.921,929.941,956.311,983.04
Inventories (%)
Accounts Payable 1,153.011,227.21880.271,005.661,053.931,151.461,167.201,183.151,199.311,215.70
Accounts Payable (%)
Capital Expenditure -81.50-90.64-76.22-48.83-79.01-81.04-82.15-83.27-84.41-85.56
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 77.29
Beta 0.713
Diluted Shares Outstanding 143.40
Cost of Debt
Tax Rate 24.00
After-tax Cost of Debt 1.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.492
Total Debt 1,216.68
Total Equity 11,083.70
Total Capital 12,300.38
Debt Weighting 9.89
Equity Weighting 90.11
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 12,461.5413,2029,985.8010,119.1412,401.0212,570.4812,742.2512,916.3713,092.8713,271.78
EBITDA 1,015.53977.721,089.98726.081,065.711,061.941,076.451,091.161,106.071,121.19
EBIT 822.46770.16905.04540.54856.18848.33859.92871.67883.58895.65
Tax Rate 50.62%22.93%-2.12%19.22%24.00%22.93%22.93%22.93%22.93%22.93%
EBIAT 406.11593.54924.23436.63650.71653.79662.73671.78680.96690.27
Depreciation 193.07207.56184.94185.54209.53213.62216.53219.49222.49225.53
Accounts Receivable --133.66357.47-178.54-27.04-112.23-21.37-21.66-21.96-22.26
Inventories --36.94541.94-83.70-348.64-17.12-25.67-26.02-26.37-26.73
Accounts Payable -74.20-346.94125.3948.2897.5315.7315.9516.1716.39
Capital Expenditure -81.50-90.64-76.22-48.83-79.02-81.04-82.15-83.27-84.41-85.56
UFCF 517.68614.051,585.42436.49453.82754.54765.81776.27786.88797.63
WACC
PV UFCF 711.70681.31651.40622.81595.47
SUM PV UFCF 3,262.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.02
Free cash flow (t + 1) 813.58
Terminal Value 20,238.40
Present Value of Terminal Value 15,109.05

Intrinsic Value

Enterprise Value 18,371.74
Net Debt 1,098.72
Equity Value 17,273.03
Shares Outstanding 143.40
Equity Value Per Share 120.45