Discounted Cash Flow (DCF) Analysis Unlevered

Smith & Nephew plc (SNN)

$21.89

-0.19 (-0.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 69.28 | 21.89 | 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 4,7654,9045,1384,5605,2125,351.915,495.575,643.095,794.585,950.12
Revenue (%)
EBITDA 1,3931,2871,3208831,2471,332.181,367.941,404.661,442.371,481.09
EBITDA (%)
EBIT 946852818321666781801.97823.50845.60868.30
EBIT (%)
Depreciation 447435502562581551.18565.97581.17596.77612.78
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 1693652771,7621,290853.86876.78900.32924.49949.30
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories 1,3041,3951,6141,6911,8441,709.281,755.161,802.281,850.661,900.33
Inventories (%)
Accounts Payable 8738549418911,0961,012.771,039.961,067.871,096.541,125.98
Accounts Payable (%)
Capital Expenditure -376-347-408-443-408-432.98-444.60-456.53-468.79-481.37
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 21.89
Beta 0.402
Diluted Shares Outstanding 438.86
Cost of Debt
Tax Rate 10.58
After-tax Cost of Debt 2.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.870
Total Debt 3,339
Total Equity 9,606.67
Total Capital 12,945.67
Debt Weighting 25.79
Equity Weighting 74.21
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 4,7654,9045,1384,5605,2125,351.915,495.575,643.095,794.585,950.12
EBITDA 1,3931,2871,3208831,2471,332.181,367.941,404.661,442.371,481.09
EBIT 946852818321666781801.97823.50845.60868.30
Tax Rate 12.74%15.11%19.25%-82.11%10.58%-4.89%-4.89%-4.89%-4.89%-4.89%
EBIAT 825.46723.27660.57584.59595.54819.17841.16863.74886.93910.74
Depreciation 447435502562581551.18565.97581.17596.77612.78
Accounts Receivable ----------
Inventories --91-219-77-153134.72-45.88-47.11-48.38-49.68
Accounts Payable --1987-50205-83.2327.1927.9228.6729.44
Capital Expenditure -376-347-408-443-408-432.98-444.60-456.53-468.79-481.37
UFCF 896.46701.27622.57576.59820.54988.87943.84969.18995.191,021.91
WACC
PV UFCF 942.59857.56839.37821.56804.13
SUM PV UFCF 4,265.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.91
Free cash flow (t + 1) 1,042.35
Terminal Value 35,819.45
Present Value of Terminal Value 28,186.06

Intrinsic Value

Enterprise Value 32,451.27
Net Debt 2,049
Equity Value 30,402.27
Shares Outstanding 438.86
Equity Value Per Share 69.28