Discounted Cash Flow (DCF) Analysis Unlevered

IQVIA Holdings Inc. (IQV)

$240.62

-4.09 (-1.67%)

All numbers are in Millions, Currency in USD

Stock DCF: 221.59 | 240.62 | overvalue

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	9,739	10,412	11,088	11,359	13,874	15,191.61	16,634.36	18,214.13	19,943.92	21,837.99
Revenue (%)
EBITDA	1,679	1,873	1,956	2,054	2,768	2,761.93	3,024.23	3,311.44	3,625.93	3,970.28
EBITDA (%)
EBIT	668	732	754	767	1,504	1,163.14	1,273.60	1,394.56	1,527	1,672.02
EBIT (%)
Depreciation	1,011	1,141	1,202	1,287	1,264	1,598.79	1,750.63	1,916.88	2,098.93	2,298.26
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	1,005	938	899	1,902	1,477	1,665.80	1,824	1,997.23	2,186.90	2,394.59
Total Cash (%)
Account Receivables	2,040	2,463	2,638	2,466	2,609	3,308.98	3,623.24	3,967.34	4,344.11	4,756.67
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	322	437	2,512	2,813	621	1,804.73	1,976.13	2,163.80	2,369.30	2,594.31
Accounts Payable (%)
Capital Expenditure	-369	-459	-582	-616	-640	-713.46	-781.22	-855.41	-936.65	-1,025.61
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 240.62
Beta	1.320
Diluted Shares Outstanding	191.30
Cost of Debt
Tax Rate	14.36
After-tax Cost of Debt	2.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.124
Total Debt	12,438
Total Equity	46,030.61
Total Capital	58,468.61
Debt Weighting	21.27
Equity Weighting	78.73
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	9,739	10,412	11,088	11,359	13,874	15,191.61	16,634.36	18,214.13	19,943.92	21,837.99
EBITDA	1,679	1,873	1,956	2,054	2,768	2,761.93	3,024.23	3,311.44	3,625.93	3,970.28
EBIT	668	732	754	767	1,504	1,163.14	1,273.60	1,394.56	1,527	1,672.02
Tax Rate	-295.47%	21.04%	45.74%	25.20%	14.36%	-37.83%	-37.83%	-37.83%	-37.83%	-37.83%
EBIAT	2,641.73	578.01	409.13	573.71	1,288	1,603.11	1,755.36	1,922.06	2,104.60	2,304.47
Depreciation	1,011	1,141	1,202	1,287	1,264	1,598.79	1,750.63	1,916.88	2,098.93	2,298.26
Accounts Receivable	-	-423	-175	172	-143	-699.98	-314.25	-344.10	-376.78	-412.56
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	115	2,075	301	-2,192	1,183.73	171.40	187.67	205.50	225.01
Capital Expenditure	-369	-459	-582	-616	-640	-713.46	-781.22	-855.41	-936.65	-1,025.61
UFCF	3,283.73	952.01	2,929.13	1,717.71	-423	2,972.19	2,581.90	2,827.11	3,095.60	3,389.59
WACC
PV UFCF						2,758.92	2,224.68	2,261.17	2,298.25	2,335.95
SUM PV UFCF										11,878.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.73
Free cash flow (t + 1)	3,457.38
Terminal Value	60,338.18
Present Value of Terminal Value	41,582.34

Intrinsic Value

Enterprise Value	53,461.30
Net Debt	11,072
Equity Value	42,389.30
Shares Outstanding	191.30
Equity Value Per Share	221.59