Discounted Cash Flow (DCF) Analysis Unlevered

Henry Schein, Inc. (HSIC)

$75.09

-0.55 (-0.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 86.80 | 75.09 | 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 13,2029,985.8010,119.1412,401.0212,64712,694.6612,742.5112,790.5312,838.7412,887.13
Revenue (%)
EBITDA 1,121.85930.75758.901,075.611,1081,085.461,089.551,093.661,097.781,101.91
EBITDA (%)
EBIT 914.29745.80573.37866.09896866.51869.77873.05876.34879.65
EBIT (%)
Depreciation 207.56184.94185.54209.53212218.95219.77220.60221.43222.27
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 80.21106.10421.18117.96117195.72196.46197.20197.94198.69
Total Cash (%)
Account Receivables 1,603.711,246.251,424.791,451.831,4421,569.491,575.411,581.351,587.311,593.29
Account Receivables (%)
Inventories 1,970.741,428.801,512.501,861.141,9631,896.891,904.041,911.221,918.421,925.65
Inventories (%)
Accounts Payable 1,227.21880.271,005.661,053.931,0041,129.481,133.741,138.011,142.301,146.60
Accounts Payable (%)
Capital Expenditure -90.64-76.22-48.83-79.01-96-84.51-84.83-85.15-85.47-85.79
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 75.09
Beta 0.846
Diluted Shares Outstanding 137.76
Cost of Debt
Tax Rate 25.38
After-tax Cost of Debt 3.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.296
Total Debt 1,497
Total Equity 10,344.07
Total Capital 11,841.07
Debt Weighting 12.64
Equity Weighting 87.36
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 13,2029,985.8010,119.1412,401.0212,64712,694.6612,742.5112,790.5312,838.7412,887.13
EBITDA 1,121.85930.75758.901,075.611,1081,085.461,089.551,093.661,097.781,101.91
EBIT 914.29745.80573.37866.09896866.51869.77873.05876.34879.65
Tax Rate 22.93%23.45%19.22%24.00%25.38%23.00%23.00%23.00%23.00%23.00%
EBIAT 704.61570.93463.14658.24668.58667.24669.75672.28674.81677.35
Depreciation 207.56184.94185.54209.53212218.95219.77220.60221.43222.27
Accounts Receivable -357.47-178.54-27.049.83-127.49-5.92-5.94-5.96-5.98
Inventories -541.94-83.70-348.64-101.8666.11-7.15-7.18-7.20-7.23
Accounts Payable --346.94125.3948.28-49.93125.484.264.274.294.31
Capital Expenditure -90.64-76.22-48.83-79.02-96-84.51-84.83-85.15-85.47-85.79
UFCF 821.541,232.12463461.35642.62865.77795.89798.89801.90804.92
WACC
PV UFCF 804.24686.79640.39597.12556.78
SUM PV UFCF 3,285.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.65
Free cash flow (t + 1) 821.02
Terminal Value 14,531.36
Present Value of Terminal Value 10,051.62

Intrinsic Value

Enterprise Value 13,336.95
Net Debt 1,380
Equity Value 11,956.95
Shares Outstanding 137.76
Equity Value Per Share 86.80