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 20,91824,35825,54232,21839,21145,989.4653,939.7363,264.3774,200.9887,028.21
Revenue (%)
EBITDA 5,0516,1967,02310,10311,96212,779.9914,989.2917,580.5120,619.6824,184.23
EBITDA (%)
EBIT 3,0183,9294,7467,7789,3708,938.2610,483.4312,295.7214,421.3016,914.33
EBIT (%)
Depreciation 2,0332,2672,2772,3252,5923,841.734,505.855,284.796,198.387,269.90
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 1,3352,1032,39910,3254,4776,242.907,322.128,587.9110,072.5111,813.76
Total Cash (%)
Account Receivables 4,3114,1364,9526,4728,9459,186.6210,774.7212,637.3614,82217,384.30
Account Receivables (%)
Inventories 2,9713,0053,3704,0295,0515,989.757,025.208,239.669,664.0611,334.70
Inventories (%)
Accounts Payable 1,4281,6151,9202,1752,8673,222.633,779.734,433.135,199.496,098.34
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 20,91824,35825,54232,21839,21145,989.4653,939.7363,264.3774,200.9887,028.21
EBITDA 5,0516,1967,02310,10311,96212,779.9914,989.2917,580.5120,619.6824,184.23
EBIT 3,0183,9294,7467,7789,3708,938.2610,483.4312,295.7214,421.3016,914.33
Tax Rate 8.40%9.93%9.19%11.76%12.62%10.38%10.38%10.38%10.38%10.38%
EBIAT 2,764.533,538.754,309.886,862.948,187.228,010.339,395.0911,019.2312,924.1415,158.35
Depreciation 2,0332,2672,2772,3252,5923,841.734,505.855,284.796,198.387,269.90
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 -187305255692355.63557.10653.41766.36898.84
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 4,289.535,375.754,784.885,789.945,453.229,171.619,657.9711,327.5613,285.7815,582.51
WACC
PV UFCF 8,647.578,585.849,494.7110,499.7911,611.26
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