Discounted Cash Flow (DCF) Analysis Unlevered

Seagen Inc. (SGEN)

$228.74

-0.16 (-0.07%)
All numbers are in Millions, Currency in USD
Stock DCF: -475.31 | 228.74 | 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 654.70916.712,175.541,574.371,962.412,817.804,046.035,809.648,341.9711,978.11
Revenue (%)
EBITDA -273.65-282.44578-688.41-623.63-684.97-983.54-1,412.25-2,027.83-2,911.73
EBITDA (%)
EBIT -299.68-315.95514.62-767.03-705.78-796.14-1,143.17-1,641.46-2,356.94-3,384.30
EBIT (%)
Depreciation 26.0333.5163.3878.6382.16111.17159.63229.20329.11472.57
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 459.87868.342,660.252,160.041,735.072,890.274,150.095,959.058,556.5112,286.16
Total Cash (%)
Account Receivables 146.28236324.99389.26501.91638.66917.051,316.771,890.732,714.88
Account Receivables (%)
Inventories 53.2485.93116.14200.66427.21323.25464.16666.47956.981,374.11
Inventories (%)
Accounts Payable 44.1852.2978.07114.82207.85191.19274.53394.19566.01812.73
Accounts Payable (%)
Capital Expenditure -21.22-70.75-82.41-52.33-77.34-124.05-178.12-255.76-367.25-527.33
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 228.74
Beta 0.321
Diluted Shares Outstanding 184.68
Cost of Debt
Tax Rate -1.33
After-tax Cost of Debt 4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.842
Total Debt 43.47
Total Equity 42,242.79
Total Capital 42,286.26
Debt Weighting 0.10
Equity Weighting 99.90
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 654.70916.712,175.541,574.371,962.412,817.804,046.035,809.648,341.9711,978.11
EBITDA -273.65-282.44578-688.41-623.63-684.97-983.54-1,412.25-2,027.83-2,911.73
EBIT -299.68-315.95514.62-767.03-705.78-796.14-1,143.17-1,641.46-2,356.94-3,384.30
Tax Rate 9.60%60.14%0.33%0.18%-1.33%13.79%13.79%13.79%13.79%13.79%
EBIAT -270.91-125.95512.92-765.63-715.15-686.39-985.58-1,415.18-2,032.04-2,917.77
Depreciation 26.0333.5163.3878.6382.16111.17159.63229.20329.11472.57
Accounts Receivable --89.72-88.99-64.27-112.66-136.75-278.38-399.73-573.96-824.14
Inventories --32.69-30.20-84.53-226.55103.96-140.90-202.32-290.51-417.13
Accounts Payable -8.1125.7836.7693.03-16.6683.34119.66171.82246.72
Capital Expenditure -21.22-70.75-82.41-52.33-77.34-124.05-178.12-255.76-367.25-527.33
UFCF -266.09-277.48400.48-851.37-956.51-748.73-1,340.03-1,924.12-2,762.82-3,967.09
WACC
PV UFCF -707.42-1,196.23-1,622.87-2,201.67-2,986.92
SUM PV UFCF -8,715.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.84
Free cash flow (t + 1) -4,046.43
Terminal Value -105,375.83
Present Value of Terminal Value -79,339.94

Intrinsic Value

Enterprise Value -88,055.04
Net Debt -276.47
Equity Value -87,778.58
Shares Outstanding 184.68
Equity Value Per Share -475.31