Discounted Cash Flow (DCF) Analysis Unlevered

Ligand Pharmaceuticals Incorporated (LGND)

$71.47

-0.18 (-0.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,087.75 | 71.47 | 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 141.10251.45120.28186.42277.13366.98485.97643.53852.171,128.46
Revenue (%)
EBITDA 68.94236.32876.1244.85117.11688.13911.231,206.671,597.902,115.97
EBITDA (%)
EBIT 57.23221.61832.3816.8866.04626.52829.651,098.631,454.831,926.52
EBIT (%)
Depreciation 11.7114.7243.7327.9751.0761.6181.59108.04143.07189.45
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 201.66764.571,069.87411.19341.111,233.141,632.952,162.392,863.473,791.87
Total Cash (%)
Account Receivables 29.9755.8541.7559.0691.65104.89138.90183.94243.57322.54
Account Receivables (%)
Inventories 4.377.127.3026.4927.3326.4735.0546.4261.4781.40
Inventories (%)
Accounts Payable 2.264.182.423.785.066.708.8811.7515.5720.61
Accounts Payable (%)
Capital Expenditure -7.15-11.89-2.55-4.46-8.76-12.82-16.98-22.49-29.78-39.43
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 71.47
Beta 1.043
Diluted Shares Outstanding 17.14
Cost of Debt
Tax Rate -21.75
After-tax Cost of Debt 5.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.694
Total Debt 336.26
Total Equity 1,225.14
Total Capital 1,561.40
Debt Weighting 21.54
Equity Weighting 78.46
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 141.10251.45120.28186.42277.13366.98485.97643.53852.171,128.46
EBITDA 68.94236.32876.1244.85117.11688.13911.231,206.671,597.902,115.97
EBIT 57.23221.61832.3816.8866.04626.52829.651,098.631,454.831,926.52
Tax Rate 78.06%17.31%21.01%71.67%-21.75%33.26%33.26%33.26%33.26%33.26%
EBIAT 12.56183.24657.544.7880.40418.14553.70733.22970.951,285.75
Depreciation 11.7114.7243.7327.9751.0761.6181.59108.04143.07189.45
Accounts Receivable --25.8814.10-17.32-32.58-13.25-34.01-45.03-59.64-78.97
Inventories --2.75-0.17-19.19-0.840.85-8.58-11.37-15.05-19.93
Accounts Payable -1.92-1.761.361.281.642.172.883.815.05
Capital Expenditure -7.15-11.89-2.55-4.46-8.76-12.82-16.98-22.49-29.78-39.43
UFCF 17.12159.36710.88-6.8590.57456.17577.89765.251,013.361,341.91
WACC
PV UFCF 422.30495.26607.14744.30912.44
SUM PV UFCF 3,181.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.02
Free cash flow (t + 1) 1,368.75
Terminal Value 22,736.74
Present Value of Terminal Value 15,459.92

Intrinsic Value

Enterprise Value 18,641.37
Net Debt -4.85
Equity Value 18,646.22
Shares Outstanding 17.14
Equity Value Per Share 1,087.75