Discounted Cash Flow (DCF) Analysis Unlevered

IQVIA Holdings Inc. (IQV)

$216.91

+2.81 (+1.31%)

All numbers are in Millions, Currency in USD

Stock DCF: 107.24 | 216.91 | overvalue

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	10,412	11,088	11,359	13,874	14,410	15,668.75	17,037.45	18,525.71	20,143.98	21,903.61
Revenue (%)
EBITDA	1,953	2,100	2,141	2,813	2,937	3,046.07	3,312.15	3,601.48	3,916.07	4,258.15
EBITDA (%)
EBIT	812	898	854	1,549	1,807	1,476.64	1,605.63	1,745.88	1,898.39	2,064.22
EBIT (%)
Depreciation	1,141	1,202	1,287	1,264	1,130	1,569.43	1,706.53	1,855.60	2,017.69	2,193.94
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	938	899	1,902	1,477	1,309	1,679.41	1,826.11	1,985.62	2,159.07	2,347.67
Total Cash (%)
Account Receivables	2,463	2,638	2,466	2,609	2,960	3,400.21	3,697.22	4,020.18	4,371.36	4,753.20
Account Receivables (%)
Inventories	151	138	159	156	151	196.39	213.54	232.20	252.48	274.54
Inventories (%)
Accounts Payable	437	2,512	2,813	2,981	3,316	3,012	3,275.10	3,561.19	3,872.27	4,210.52
Accounts Payable (%)
Capital Expenditure	-459	-582	-616	-640	-674	-763.71	-830.42	-902.96	-981.84	-1,067.61
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 216.91
Beta	1.418
Diluted Shares Outstanding	190.60
Cost of Debt
Tax Rate	19.96
After-tax Cost of Debt	3.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.849
Total Debt	13,011
Total Equity	41,343.05
Total Capital	54,354.05
Debt Weighting	23.94
Equity Weighting	76.06
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	10,412	11,088	11,359	13,874	14,410	15,668.75	17,037.45	18,525.71	20,143.98	21,903.61
EBITDA	1,953	2,100	2,141	2,813	2,937	3,046.07	3,312.15	3,601.48	3,916.07	4,258.15
EBIT	812	898	854	1,549	1,807	1,476.64	1,605.63	1,745.88	1,898.39	2,064.22
Tax Rate	21.04%	45.74%	25.20%	14.36%	19.96%	25.26%	25.26%	25.26%	25.26%	25.26%
EBIAT	641.18	487.27	638.78	1,326.54	1,446.40	1,103.66	1,200.06	1,304.89	1,418.88	1,542.82
Depreciation	1,141	1,202	1,287	1,264	1,130	1,569.43	1,706.53	1,855.60	2,017.69	2,193.94
Accounts Receivable	-	-175	172	-143	-351	-440.21	-297.02	-322.96	-351.17	-381.85
Inventories	-	13	-21	3	5	-45.39	-17.16	-18.65	-20.28	-22.05
Accounts Payable	-	2,075	301	168	335	-304	263.11	286.09	311.08	338.25
Capital Expenditure	-459	-582	-616	-640	-674	-763.71	-830.42	-902.96	-981.84	-1,067.61
UFCF	1,323.18	3,020.27	1,761.78	1,978.54	1,891.40	1,119.78	2,025.10	2,202	2,394.35	2,603.50
WACC
PV UFCF						1,026.85	1,702.92	1,698.01	1,693.11	1,688.22
SUM PV UFCF										7,809.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.05
Free cash flow (t + 1)	2,655.57
Terminal Value	37,667.64
Present Value of Terminal Value	24,425.31

Intrinsic Value

Enterprise Value	32,234.42
Net Debt	11,795
Equity Value	20,439.42
Shares Outstanding	190.60
Equity Value Per Share	107.24