Discounted Cash Flow (DCF) Analysis Unlevered

Thermo Fisher Scientific Inc. (TMO)

$548.27

+4.99 (+0.92%)

All numbers are in Millions, Currency in USD

Stock DCF: 777.34 | 548.27 | 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	20,918	24,358	25,542	32,218	39,211	45,989.46	53,939.73	63,264.37	74,200.98	87,028.21
Revenue (%)
EBITDA	5,051	6,196	7,023	10,103	11,962	12,779.99	14,989.29	17,580.51	20,619.68	24,184.23
EBITDA (%)
EBIT	3,018	3,929	4,746	7,778	9,370	8,938.26	10,483.43	12,295.72	14,421.30	16,914.33
EBIT (%)
Depreciation	2,033	2,267	2,277	2,325	2,592	3,841.73	4,505.85	5,284.79	6,198.38	7,269.90
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	1,335	2,103	2,399	10,325	4,477	6,242.90	7,322.12	8,587.91	10,072.51	11,813.76
Total Cash (%)
Account Receivables	4,311	4,136	4,952	6,472	8,945	9,186.62	10,774.72	12,637.36	14,822	17,384.30
Account Receivables (%)
Inventories	2,971	3,005	3,370	4,029	5,051	5,989.75	7,025.20	8,239.66	9,664.06	11,334.70
Inventories (%)
Accounts Payable	1,428	1,615	1,920	2,175	2,867	3,222.63	3,779.73	4,433.13	5,199.49	6,098.34
Accounts Payable (%)
Capital Expenditure	-508	-758	-926	-1,474	-2,523	-1,855.71	-2,176.51	-2,552.76	-2,994.06	-3,511.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 548.27
Beta	0.830
Diluted Shares Outstanding	399
Cost of Debt
Tax Rate	12.62
After-tax Cost of Debt	1.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.806
Total Debt	34,870
Total Equity	218,759.73
Total Capital	253,629.73
Debt Weighting	13.75
Equity Weighting	86.25
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	20,918	24,358	25,542	32,218	39,211	45,989.46	53,939.73	63,264.37	74,200.98	87,028.21
EBITDA	5,051	6,196	7,023	10,103	11,962	12,779.99	14,989.29	17,580.51	20,619.68	24,184.23
EBIT	3,018	3,929	4,746	7,778	9,370	8,938.26	10,483.43	12,295.72	14,421.30	16,914.33
Tax Rate	8.40%	9.93%	9.19%	11.76%	12.62%	10.38%	10.38%	10.38%	10.38%	10.38%
EBIAT	2,764.53	3,538.75	4,309.88	6,862.94	8,187.22	8,010.33	9,395.09	11,019.23	12,924.14	15,158.35
Depreciation	2,033	2,267	2,277	2,325	2,592	3,841.73	4,505.85	5,284.79	6,198.38	7,269.90
Accounts Receivable	-	175	-816	-1,520	-2,473	-241.62	-1,588.10	-1,862.64	-2,184.64	-2,562.30
Inventories	-	-34	-365	-659	-1,022	-938.75	-1,035.46	-1,214.46	-1,424.40	-1,670.64
Accounts Payable	-	187	305	255	692	355.63	557.10	653.41	766.36	898.84
Capital Expenditure	-508	-758	-926	-1,474	-2,523	-1,855.71	-2,176.51	-2,552.76	-2,994.06	-3,511.65
UFCF	4,289.53	5,375.75	4,784.88	5,789.94	5,453.22	9,171.61	9,657.97	11,327.56	13,285.78	15,582.51
WACC
PV UFCF						8,647.57	8,585.84	9,494.71	10,499.79	11,611.26
SUM PV UFCF										48,839.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.06
Free cash flow (t + 1)	15,894.16
Terminal Value	391,481.71
Present Value of Terminal Value	291,711.37

Intrinsic Value

Enterprise Value	340,550.53
Net Debt	30,393
Equity Value	310,157.53
Shares Outstanding	399
Equity Value Per Share	777.34