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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 $ 84.94
Diluted Shares Outstanding 1,770.00
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 150,343.80
Total Capital 169,702.80
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 1,770.00
Equity Value Per Share 58.08

Results Unlevered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
12.56 (%) 35.60 Sell 38.06 Sell 40.99 Sell 44.53 Sell 48.90 Sell 54.42 Sell 61.63 Sell 71.43 Sell 85.53 Buy
12.06 (%) 34.08 Sell 36.31 Sell 38.94 Sell 42.10 Sell 45.95 Sell 50.76 Sell 56.92 Sell 65.13 Sell 76.57 Sell
11.56 (%) 32.70 Sell 34.72 Sell 37.09 Sell 39.92 Sell 43.33 Sell 47.54 Sell 52.87 Sell 59.82 Sell 69.26 Sell
11.06 (%) 31.42 Sell 33.26 Sell 35.41 Sell 37.95 Sell 40.99 Sell 44.70 Sell 49.34 Sell 55.28 Sell 63.19 Sell
10.56 (%) 30.25 Sell 31.93 Sell 33.88 Sell 36.17 Sell 38.89 Sell 42.18 Sell 46.24 Sell 51.38 Sell 58.08 Sell
10.06 (%) 29.16 Sell 30.70 Sell 32.48 Sell 34.55 Sell 37.00 Sell 39.93 Sell 43.51 Sell 47.98 Sell 53.72 Sell
9.56 (%) 28.16 Sell 29.57 Sell 31.20 Sell 33.08 Sell 35.29 Sell 37.91 Sell 41.09 Sell 45.00 Sell 49.96 Sell
9.06 (%) 27.23 Sell 28.53 Sell 30.01 Sell 31.73 Sell 33.73 Sell 36.09 Sell 38.92 Sell 42.37 Sell 46.69 Sell
8.56 (%) 26.36 Sell 27.56 Sell 28.93 Sell 30.49 Sell 32.31 Sell 34.44 Sell 36.97 Sell 40.04 Sell 43.82 Sell