Discounted Cash Flow (DCF) Analysis Unlevered
Zimmer Biomet Holdings, Inc. (ZBH)
$129.2
+2.44 (+1.92%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 7,982.20 | 7,024.50 | 7,836.20 | 6,939.90 | 6,665.07 | 6,401.12 | 6,147.62 | 5,904.16 | 5,670.34 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||
| EBITDA | 2,138.90 | 968.80 | 1,693.70 | 1,494.70 | 1,395.32 | 1,340.06 | 1,286.99 | 1,236.02 | 1,187.07 |
| EBITDA (%) | |||||||||
| EBIT | 1,132.80 | -63.90 | 626.30 | 568.30 | 490.94 | 471.49 | 452.82 | 434.89 | 417.67 |
| EBIT (%) | |||||||||
| Depreciation | 1,006.10 | 1,032.70 | 1,067.40 | 926.40 | 904.38 | 868.57 | 834.17 | 801.14 | 769.41 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 617.90 | 802.10 | 478.50 | 375.70 | 511.20 | 490.96 | 471.51 | 452.84 | 434.91 |
|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||
| Account Receivables | 1,363.90 | 1,452.70 | 1,404.90 | 1,381.50 | 1,259.73 | 1,209.85 | 1,161.93 | 1,115.92 | 1,071.73 |
| Account Receivables (%) | |||||||||
| Inventories | 2,385 | 2,450.70 | 2,394.50 | 2,147.20 | 2,103.89 | 2,020.57 | 1,940.55 | 1,863.70 | 1,789.90 |
| Inventories (%) | |||||||||
| Accounts Payable | 400.90 | 330 | 351.20 | 354.10 | 321.66 | 308.92 | 296.69 | 284.94 | 273.66 |
| Accounts Payable (%) | |||||||||
| Capital Expenditure | -404.70 | -117.90 | -180.40 | -187.90 | -195.92 | -188.16 | -180.71 | -173.55 | -166.68 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 129.2 |
|---|---|
| Beta | 1.005 |
| Diluted Shares Outstanding | 210.30 |
| Cost of Debt | |
| Tax Rate | 27.83 |
| After-tax Cost of Debt | 2.09% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.237 |
| Total Debt | 5,696.50 |
| Total Equity | 27,170.76 |
| Total Capital | 32,867.26 |
| Debt Weighting | 17.33 |
| Equity Weighting | 82.67 |
| Wacc |
Build Up Free Cash
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 7,982.20 | 7,024.50 | 7,836.20 | 6,939.90 | 6,665.07 | 6,401.12 | 6,147.62 | 5,904.16 | 5,670.34 |
|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 2,138.90 | 968.80 | 1,693.70 | 1,494.70 | 1,395.32 | 1,340.06 | 1,286.99 | 1,236.02 | 1,187.07 |
| EBIT | 1,132.80 | -63.90 | 626.30 | 568.30 | 490.94 | 471.49 | 452.82 | 434.89 | 417.67 |
| Tax Rate | -24.93% | 49.38% | 4.02% | 27.83% | 14.07% | 14.07% | 14.07% | 14.07% | 14.07% |
| EBIAT | 1,415.19 | -32.35 | 601.15 | 410.13 | 421.84 | 405.13 | 389.09 | 373.68 | 358.88 |
| Depreciation | 1,006.10 | 1,032.70 | 1,067.40 | 926.40 | 904.38 | 868.57 | 834.17 | 801.14 | 769.41 |
| Accounts Receivable | - | -88.80 | 47.80 | 23.40 | 121.77 | 49.89 | 47.91 | 46.01 | 44.19 |
| Inventories | - | -65.70 | 56.20 | 247.30 | 43.31 | 83.32 | 80.02 | 76.85 | 73.81 |
| Accounts Payable | - | -70.90 | 21.20 | 2.90 | -32.44 | -12.74 | -12.23 | -11.75 | -11.28 |
| Capital Expenditure | -404.70 | -117.90 | -180.40 | -187.90 | -195.92 | -188.16 | -180.71 | -173.55 | -166.68 |
| UFCF | 2,016.59 | 657.05 | 1,613.35 | 1,422.23 | 1,262.94 | 1,206 | 1,158.24 | 1,112.38 | 1,068.32 |
| WACC | |||||||||
| PV UFCF | 1,262.94 | 1,125.32 | 1,008.45 | 903.72 | 809.86 | ||||
| SUM PV UFCF | 4,768.39 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.17 |
| Free cash flow (t + 1) | 1,089.69 |
| Terminal Value | 21,077.16 |
| Present Value of Terminal Value | 14,908.91 |
Intrinsic Value
| Enterprise Value | 19,677.30 |
|---|---|
| Net Debt | 5,320.80 |
| Equity Value | 14,356.50 |
| Shares Outstanding | 210.30 |
| Equity Value Per Share | 68.27 |