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Discounted Cash Flow (DCF) Analysis Unlevered


Abbott Laboratories

Abbott Laboratories (ABT)

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 19,657.0020,246.7120,404.6320,853.5427,391.1230,579.4533,573.1736,859.9940,468.5844,430.4548,780.20
Revenue (%)
EBITDA 4,493.594,778.226,635.593,534.676,280.787,011.877,933.348,710.029,562.7310,498.9211,526.76
EBITDA (%)
EBIT 2,775.573,229.355,164.412,181.283,259.543,733.755,032.625,525.316,066.246,660.137,312.15
EBIT (%)
Depreciation 1,718.021,548.871,471.171,353.393,021.243,278.122,900.723,184.703,496.493,838.794,214.61
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 8,098.684,460.356,125.4718,774.449,608.804,085.4112,965.9614,235.3315,628.9717,159.0418,838.91
Total Cash (%)
Account Receivables 3,986.443,585.693,417.783,248.985,248.145,183.225,955.886,538.967,179.137,881.968,653.61
Account Receivables (%)
Inventories 2,693.012,642.202,599.552,433.613,601.933,794.914,294.014,714.395,175.935,682.666,238.99
Inventories (%)
Accounts Payable 1,026.101,064.981,081.451,178.222,402.202,975.382,232.622,451.192,691.162,954.633,243.88
Accounts Payable (%)
Capital Expenditure -1,144.04-1,077.12-1,110.01-1,121.92-1,133.99-1,394.42-1,715.59-1,883.55-2,067.94-2,270.40-2,492.67
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 85.46
Diluted Shares Outstanding 1,758.00
Cost of Debt
Tax Rate 18.54
After-tax Cost of Debt -0.88
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.39
Total Debt 19,359.00
Total Equity 150,238.68
Total Capital 169,597.68
Debt Weighting 11.41
Equity Weighting 88.59
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 19,657.0020,246.7120,404.6320,853.5427,391.1230,579.4533,573.1736,859.9940,468.5844,430.4548,780.20
EBITDA 4,493.594,778.226,635.593,534.676,280.787,011.877,933.348,710.029,562.7310,498.9211,526.76
EBIT 2,775.573,229.355,164.412,181.283,259.543,733.755,032.625,525.316,066.246,660.137,312.15
Tax Rate 2.02%25.87%11.54%20.00%79.75%18.54%26.29%26.29%26.29%26.29%26.29%
EBIAT 2,719.612,393.974,568.441,745.02660.213,041.463,709.794,072.984,471.724,909.505,390.14
Depreciation 1,718.021,548.871,471.171,353.393,021.243,278.122,900.723,184.703,496.493,838.794,214.61
Accounts Receivable -400.75167.92168.80-1,999.1664.92-772.66-583.08-640.16-702.84-771.64
Inventories -50.8142.65165.94-1,168.32-192.98-499.10-420.38-461.54-506.72-556.33
Accounts Payable -38.8816.4796.781,223.98573.18-742.76218.57239.97263.46289.26
Capital Expenditure --66.9132.8911.9112.07260.43321.17167.96184.40202.45222.27
UFCF 4,437.644,366.386,299.533,541.841,750.027,025.134,917.156,640.747,290.878,004.658,788.30
WACC
PV UFCF 4,447.495,432.765,394.935,357.355,320.04
SUM PV UFCF 33,733.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.56
Free cash flow (t + 1) 9,139.84
Terminal Value 139,326.77
Present Value of Terminal Value 84,342.10

Intrinsic Value

Enterprise Value 118,075.69
Net Debt 15,273.59
Equity Value 102,802.10
Shares Outstanding 1,758.00
Equity Value Per Share 58.48