Discounted Cash Flow (DCF) Analysis Unlevered

Henry Schein, Inc. (HSIC)

$76.63

-0.16 (-0.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 91.20 | 76.63 | 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 9,985.8010,119.1412,401.0212,64712,33913,061.8713,827.0814,637.1315,494.6316,402.37
Revenue (%)
EBITDA 930.75758.901,075.611,1089431,094.521,158.641,226.511,298.371,374.43
EBITDA (%)
EBIT 745.80573.37866.09896695857.80908.05961.251,017.561,077.18
EBIT (%)
Depreciation 184.94185.54209.53212248236.72250.58265.26280.80297.26
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 106.10421.18117.96117171221.71234.70248.45263278.41
Total Cash (%)
Account Receivables 1,246.251,424.791,451.831,4421,8631,691.981,791.111,896.042,007.112,124.70
Account Receivables (%)
Inventories 1,428.801,512.501,861.141,9631,8151,946.062,060.072,180.762,308.522,443.76
Inventories (%)
Accounts Payable 880.271,005.661,053.931,0041,0201,135.261,201.771,272.181,346.711,425.60
Accounts Payable (%)
Capital Expenditure -76.22-48.83-79.01-96-187-108.61-114.97-121.71-128.84-136.39
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 76.63
Beta 0.871
Diluted Shares Outstanding 131.75
Cost of Debt
Tax Rate 23.25
After-tax Cost of Debt 3.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.268
Total Debt 2,741
Total Equity 10,095.86
Total Capital 12,836.86
Debt Weighting 21.35
Equity Weighting 78.65
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 9,985.8010,119.1412,401.0212,64712,33913,061.8713,827.0814,637.1315,494.6316,402.37
EBITDA 930.75758.901,075.611,1089431,094.521,158.641,226.511,298.371,374.43
EBIT 745.80573.37866.09896695857.80908.05961.251,017.561,077.18
Tax Rate 23.45%19.22%24.03%25.38%23.25%23.07%23.07%23.07%23.07%23.07%
EBIAT 570.93463.14658668.58533.43659.95698.61739.53782.86828.72
Depreciation 184.94185.54209.53212248236.72250.58265.26280.80297.26
Accounts Receivable --178.54-27.049.83-421171.02-99.12-104.93-111.08-117.58
Inventories --83.70-348.64-101.86148-131.06-114.01-120.69-127.76-135.24
Accounts Payable -125.3948.28-49.9316115.2666.5170.4074.5378.90
Capital Expenditure -76.22-48.83-79.02-96-187-108.61-114.97-121.71-128.84-136.39
UFCF 679.65463461.11642.62337.43943.27687.59727.88770.52815.66
WACC
PV UFCF 880.08598.56591.18583.89576.69
SUM PV UFCF 3,230.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.18
Free cash flow (t + 1) 831.97
Terminal Value 16,061.24
Present Value of Terminal Value 11,355.60

Intrinsic Value

Enterprise Value 14,585.99
Net Debt 2,570
Equity Value 12,015.99
Shares Outstanding 131.75
Equity Value Per Share 91.20