Discounted Cash Flow (DCF) Analysis Unlevered

Teva Pharmaceutical Industries Limi... (TEVA)

$10.78

+0.05 (+0.47%)

All numbers are in Millions, Currency in USD

Stock DCF: -38.75 | 10.78 | 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	22,385	18,854	16,887	16,658	15,879	14,599.18	13,422.51	12,340.69	11,346.05	10,431.58
Revenue (%)
EBITDA	-15,211	417	1,326	-1,638	2,849	-1,453.47	-1,336.32	-1,228.61	-1,129.59	-1,038.55
EBITDA (%)
EBIT	-17,323	-1,425	-396	-3,195	1,519	-2,829.43	-2,601.38	-2,391.71	-2,198.95	-2,021.71
EBIT (%)
Depreciation	2,112	1,842	1,722	1,557	1,330	1,375.96	1,265.06	1,163.10	1,069.36	983.17
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	963	1,782	1,975	2,177	2,165	1,522.76	1,400.02	1,287.19	1,183.44	1,088.06
Total Cash (%)
Account Receivables	7,128	5,822	5,676	4,581	4,529	4,448.55	4,090	3,760.36	3,457.28	3,178.63
Account Receivables (%)
Inventories	4,924	4,731	4,422	4,403	3,818	3,613.34	3,322.12	3,054.36	2,808.18	2,581.85
Inventories (%)
Accounts Payable	2,069	1,853	1,718	1,756	1,686	1,471.71	1,353.09	1,244.03	1,143.77	1,051.58
Accounts Payable (%)
Capital Expenditure	-874	-651	-525	-578	-562	-510.25	-469.12	-431.31	-396.55	-364.59
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 10.78
Beta	1.191
Diluted Shares Outstanding	1,107
Cost of Debt
Tax Rate	36.63
After-tax Cost of Debt	2.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.258
Total Debt	23,459
Total Equity	11,933.46
Total Capital	35,392.46
Debt Weighting	66.28
Equity Weighting	33.72
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	22,385	18,854	16,887	16,658	15,879	14,599.18	13,422.51	12,340.69	11,346.05	10,431.58
EBITDA	-15,211	417	1,326	-1,638	2,849	-1,453.47	-1,336.32	-1,228.61	-1,129.59	-1,038.55
EBIT	-17,323	-1,425	-396	-3,195	1,519	-2,829.43	-2,601.38	-2,391.71	-2,198.95	-2,021.71
Tax Rate	11.50%	17.18%	21.03%	9.44%	36.63%	19.16%	19.16%	19.16%	19.16%	19.16%
EBIAT	-15,330.46	-1,180.18	-312.73	-2,893.34	962.65	-2,287.43	-2,103.07	-1,933.57	-1,777.72	-1,634.44
Depreciation	2,112	1,842	1,722	1,557	1,330	1,375.96	1,265.06	1,163.10	1,069.36	983.17
Accounts Receivable	-	1,306	146	1,095	52	80.45	358.54	329.65	303.08	278.65
Inventories	-	193	309	19	585	204.66	291.23	267.76	246.18	226.33
Accounts Payable	-	-216	-135	38	-70	-214.29	-118.62	-109.06	-100.27	-92.19
Capital Expenditure	-874	-651	-525	-578	-562	-510.25	-469.12	-431.31	-396.55	-364.59
UFCF	-14,092.46	1,293.82	1,204.27	-762.34	2,297.65	-1,350.90	-775.97	-713.43	-655.93	-603.06
WACC
PV UFCF						-1,290.02	-707.60	-621.25	-545.43	-478.87
SUM PV UFCF										-3,643.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.72
Free cash flow (t + 1)	-615.13
Terminal Value	-22,614.92
Present Value of Terminal Value	-17,957.54

Intrinsic Value

Enterprise Value	-21,600.71
Net Debt	21,294
Equity Value	-42,894.71
Shares Outstanding	1,107
Equity Value Per Share	-38.75