Discounted Cash Flow (DCF) Analysis Unlevered

Verona Pharma plc (VRNA)

$16.49

-0.31 (-1.85%)
All numbers are in Millions, Currency in USD
Stock DCF: -0.28 | 16.49 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 0000000000
Revenue (%)
EBITDA -31.27-51.76-65.27-57.04-62.66-34.56-29.20-24.66-20.83-17.60
EBITDA (%)
EBIT -31.39-52.43-65.89-57.67-63.30-34.91-29.49-24.91-21.05-17.78
EBIT (%)
Depreciation 0.120.660.620.630.640.350.300.250.210.18
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 82.1040.33187.99148.38227.8393.5178.9966.7356.3747.62
Total Cash (%)
Account Receivables 7.1165.074.283.623.062.582.181.841.56
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 3.601.910.1810.042.912.452.071.751.481.25
Accounts Payable (%)
Capital Expenditure -0.34-0.37-0.08-0.01-0.03-0.08-0.07-0.06-0.05-0.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 16.49
Beta 0.442
Diluted Shares Outstanding 591.49
Cost of Debt
Tax Rate -0.37
After-tax Cost of Debt 4.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.371
Total Debt 10.65
Total Equity 9,753.60
Total Capital 9,764.25
Debt Weighting 0.11
Equity Weighting 99.89
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 0000000000
EBITDA -31.27-51.76-65.27-57.04-62.66-34.56-29.20-24.66-20.83-17.60
EBIT -31.39-52.43-65.89-57.67-63.30-34.91-29.49-24.91-21.05-17.78
Tax Rate 17.54%18.53%-0.22%0.03%-0.37%7.10%7.10%7.10%7.10%7.10%
EBIAT -25.89-42.71-66.04-57.65-63.53-32.43-27.40-23.14-19.55-16.52
Depreciation 0.120.660.620.630.640.350.300.250.210.18
Accounts Receivable -1.100.930.790.660.560.470.400.340.29
Inventories ----------
Accounts Payable --1.69-1.739.87-7.13-0.46-0.38-0.32-0.27-0.23
Capital Expenditure -0.34-0.37-0.08-0.01-0.03-0.08-0.07-0.06-0.05-0.04
UFCF -26.10-43.01-66.29-46.38-69.39-32.06-27.08-22.87-19.32-16.32
WACC
PV UFCF -75.01-49.33-69.39-30.14-23.93-19.01-15.09-11.99
SUM PV UFCF -100.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.37
Free cash flow (t + 1) -16.65
Terminal Value -381.02
Present Value of Terminal Value -279.80

Intrinsic Value

Enterprise Value -379.96
Net Debt -217.18
Equity Value -162.78
Shares Outstanding 591.49
Equity Value Per Share -0.28