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Discounted Cash Flow (DCF) Analysis Unlevered


AbbVie Inc.

AbbVie Inc. (ABBV)

Healthcare

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 18,790.0019,960.6222,858.9025,638.5428,217.7832,755.2036,623.5940,948.8345,784.8951,192.0857,237.87
Revenue (%)
EBITDA 6,506.983,545.018,167.4810,037.4910,231.778,106.9111,492.4812,849.7414,367.3016,064.0817,961.24
EBITDA (%)
EBIT 5,610.692,758.567,330.858,847.868,730.586,341.419,800.4710,957.9112,252.0413,699.0015,316.85
EBIT (%)
Depreciation 896.28786.45836.641,189.631,501.191,765.511,692.011,891.842,115.262,365.072,644.39
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 9,894.818,373.488,407.506,422.459,788.758,061.0513,169.8414,725.2016,464.2518,408.6720,582.74
Total Cash (%)
Account Receivables 3,853.833,734.634,729.514,758.515,087.675,384.956,892.567,706.578,616.729,634.3510,772.17
Account Receivables (%)
Inventories 1,149.951,123.781,718.991,443.451,605.591,605.002,168.122,424.172,710.473,030.573,388.48
Inventories (%)
Accounts Payable 6,448.736,954.288,462.369,378.5810,226.1211,929.4413,147.8714,700.6316,436.7718,377.9620,548.39
Accounts Payable (%)
Capital Expenditure -490.42-612.79-532.61-479.44-527.67-638.73-835.02-933.63-1,043.90-1,167.18-1,305.02
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 67.55
Diluted Shares Outstanding 1,546.00
Cost of Debt
Tax Rate -9.43
After-tax Cost of Debt 0.52
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.72
Total Debt 35,002.00
Total Equity 104,432.30
Total Capital 139,434.30
Debt Weighting 25.10
Equity Weighting 74.90
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 18,790.0019,960.6222,858.9025,638.5428,217.7832,755.2036,623.5940,948.8345,784.8951,192.0857,237.87
EBITDA 6,506.983,545.018,167.4810,037.4910,231.778,106.9111,492.4812,849.7414,367.3016,064.0817,961.24
EBIT 5,610.692,758.567,330.858,847.868,730.586,341.419,800.4710,957.9112,252.0413,699.0015,316.85
Tax Rate 22.58%25.12%22.59%24.49%31.29%-9.43%19.44%19.44%19.44%19.44%19.44%
EBIAT 4,343.762,065.725,674.936,680.795,998.536,939.317,895.228,827.659,870.2011,035.8712,339.20
Depreciation 896.28786.45836.641,189.631,501.191,765.511,692.011,891.842,115.262,365.072,644.39
Accounts Receivable -119.20-994.87-29.01-329.15-297.29-1,507.60-814.01-910.15-1,017.63-1,137.82
Inventories -26.17-595.21275.54-162.140.59-563.11-256.05-286.29-320.11-357.91
Accounts Payable -505.551,508.09916.21847.541,703.321,218.421,552.761,736.141,941.182,170.44
Capital Expenditure -122.37-80.18-53.1748.23111.05196.2998.62110.26123.28137.84
UFCF 5,240.053,625.456,349.398,979.997,904.2010,222.488,931.2311,300.8012,635.4214,127.6715,796.15
WACC
PV UFCF 8,108.259,314.089,454.459,596.939,741.56
SUM PV UFCF 55,069.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.15
Free cash flow (t + 1) 16,427.99
Terminal Value 267,121.81
Present Value of Terminal Value 164,735.37

Intrinsic Value

Enterprise Value 219,804.47
Net Debt 26,940.95
Equity Value 192,863.52
Shares Outstanding 1,546.00
Equity Value Per Share 124.75