Discounted Cash Flow (DCF) Analysis Unlevered

Laboratory Corporation of America H... (LH)

$211.66

-1.37 (-0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 551.73 | 211.66 | 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 10,441.4011,333.4011,554.8013,978.5016,120.9018,006.9920,113.7422,466.9725,095.5228,031.61
Revenue (%)
EBITDA 1,897.402,064.401,921.703,050.304,081.603,607.104,029.124,500.515,027.055,615.20
EBITDA (%)
EBIT 1,364.201,512.301,344.502,425.603,336.502,740.453,061.073,419.203,819.244,266.07
EBIT (%)
Depreciation 533.20552.10577.20624.70745.10866.65968.051,081.301,207.811,349.12
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 316.70426.80337.501,320.801,472.701,019.341,138.601,271.811,420.611,586.81
Total Cash (%)
Account Receivables 1,716.901,862.302,025.303,016.602,978.303,257.753,638.904,064.634,540.185,071.37
Account Receivables (%)
Inventories 227.60237.30244.70423.20401.40428.88479.06535.11597.71667.64
Inventories (%)
Accounts Payable 663634.60632.30638.90621.30930.811,039.711,161.361,297.231,449
Accounts Payable (%)
Capital Expenditure -315.40-379.80-400.20-381.70-460.40-555.40-620.38-692.96-774.04-864.60
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 211.66
Beta 1.067
Diluted Shares Outstanding 97.50
Cost of Debt
Tax Rate 23.97
After-tax Cost of Debt 2.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.732
Total Debt 6,342.60
Total Equity 20,636.85
Total Capital 26,979.45
Debt Weighting 23.51
Equity Weighting 76.49
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 10,441.4011,333.4011,554.8013,978.5016,120.9018,006.9920,113.7422,466.9725,095.5228,031.61
EBITDA 1,897.402,064.401,921.703,050.304,081.603,607.104,029.124,500.515,027.055,615.20
EBIT 1,364.201,512.301,344.502,425.603,336.502,740.453,061.073,419.203,819.244,266.07
Tax Rate -11.75%30.32%25.44%29.88%23.97%19.57%19.57%19.57%19.57%19.57%
EBIAT 1,524.431,053.711,002.441,700.902,536.902,204.082,461.942,749.983,071.723,431.10
Depreciation 533.20552.10577.20624.70745.10866.65968.051,081.301,207.811,349.12
Accounts Receivable --145.40-163-991.3038.30-279.45-381.14-425.74-475.55-531.18
Inventories --9.70-7.40-178.5021.80-27.48-50.18-56.05-62.61-69.93
Accounts Payable --28.40-2.306.60-17.60309.51108.90121.64135.87151.77
Capital Expenditure -315.40-379.80-400.20-381.70-460.40-555.40-620.38-692.96-774.04-864.60
UFCF 1,742.231,042.511,006.74780.702,864.102,517.902,487.192,778.183,103.223,466.28
WACC
PV UFCF 2,347.042,161.082,250.112,342.812,439.33
SUM PV UFCF 11,540.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.28
Free cash flow (t + 1) 3,535.61
Terminal Value 66,962.25
Present Value of Terminal Value 47,123.35

Intrinsic Value

Enterprise Value 58,663.72
Net Debt 4,869.90
Equity Value 53,793.82
Shares Outstanding 97.50
Equity Value Per Share 551.73