DCF Tool

BDX

Becton, Dickinson And Co. – Surgical and Medical Instrument Manufacturing
BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 65,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care.
Analysis Results
Intrinsic Value $2,520.71
Latest Price $222.83
Relative Value 91% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 32.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 9.1 8.69
2023 12.1 11.0
2024 16.0 14.0
2025 21.3 17.7
2026 28.3 22.5
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 848 billion. This corresponds to a present value of 645 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 74.0 billion. Adding in the terminal value gives a total present value of 719 billion.

There are presently 285.0 million outstanding shares, so the intrinsic value per share is 2520.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 17,678,000,000
Current Cash 4,590,000,000
Current Liabilities 13,252,000,000
Current Debt 1,000,000,000
Non-Cash Working Capital (NCWC) 836,000,000
Change in NCWC -158,000,000
EBIT 5,966,000,000
Tax Provision 300,000,000
Depreciation and Amortization 4,546,000,000
Capital Expenditure -2,462,000,000
Unlevered Free Cash Flow 7,492,669,344
Current Assets 8,969,000,000
Current Cash 2,845,000,000
Current Liabilities 5,837,000,000
Current Debt 707,000,000
Non-Cash Working Capital (NCWC) 994,000,000
Change in NCWC -757,000,000
EBIT 1,793,000,000
Tax Provision 112,000,000
Depreciation and Amortization 2,154,000,000
Capital Expenditure -810,000,000
Unlevered Free Cash Flow 2,176,539,007
Current Assets 6,663,000,000
Current Cash 566,000,000
Current Liabilities 5,655,000,000
Current Debt 1,309,000,000
Non-Cash Working Capital (NCWC) 1,751,000,000
Change in NCWC 111,000,000
EBIT 2,240,000,000
Tax Provision -57,000,000
Depreciation and Amortization 2,253,000,000
Capital Expenditure -957,000,000
Unlevered Free Cash Flow 3,647,000,000
Current Assets 7,411,000,000
Current Cash 1,157,000,000
Current Liabilities 7,215,000,000
Current Debt 2,601,000,000
Non-Cash Working Capital (NCWC) 1,640,000,000
Change in NCWC 345,000,000
EBIT 2,249,000,000
Tax Provision 863,000,000
Depreciation and Amortization 1,978,000,000
Capital Expenditure -895,000,000
Unlevered Free Cash Flow 2,022,364,876
Current Assets 18,634,000,000
Current Cash 14,200,000,000
Current Liabilities 3,342,000,000
Current Debt 203,000,000
Non-Cash Working Capital (NCWC) 1,295,000,000
Change in NCWC -104,000,000
EBIT 2,246,000,000
Tax Provision -124,000,000
Depreciation and Amortization 1,088,000,000
Capital Expenditure -727,000,000
Unlevered Free Cash Flow 2,503,000,000
Current Assets 6,366,000,000
Current Cash 1,568,000,000
Current Liabilities 4,400,000,000
Current Debt 1,001,000,000
Non-Cash Working Capital (NCWC) 1,399,000,000
Change in NCWC -268,000,000
EBIT 2,158,000,000
Tax Provision 97,000,000
Depreciation and Amortization 1,114,000,000
Capital Expenditure -693,000,000
Unlevered Free Cash Flow 2,116,096,834
Current Assets 6,046,000,000
Current Cash 1,444,000,000
Current Liabilities 4,387,000,000
Current Debt 1,452,000,000
Non-Cash Working Capital (NCWC) 1,667,000,000
Change in NCWC 312,000,000
EBIT 1,500,000,000
Tax Provision 42,000,000
Depreciation and Amortization 891,000,000
Capital Expenditure -596,000,000
Unlevered Free Cash Flow 2,021,749,661
Current Assets 6,131,000,000
Current Cash 2,745,000,000
Current Liabilities 2,234,000,000
Current Debt 203,000,000
Non-Cash Working Capital (NCWC) 1,355,000,000
Change in NCWC 13,000,000
EBIT 1,606,000,000
Tax Provision 337,000,000
Depreciation and Amortization 562,000,000
Capital Expenditure -653,000,000
Unlevered Free Cash Flow 1,172,400,788
Current Assets 5,873,000,000
Current Cash 2,608,000,000
Current Liabilities 2,130,000,000
Current Debt 207,000,000
Non-Cash Working Capital (NCWC) 1,342,000,000
Change in NCWC -226,427,000
EBIT 1,255,000,000
Tax Provision 235,000,000
Depreciation and Amortization 546,000,000
Capital Expenditure -588,000,000
Unlevered Free Cash Flow 733,635,607
Current Assets 5,322,071,000
Current Cash 2,180,731,000
Current Liabilities 1,978,055,000
Current Debt 405,142,000
Non-Cash Working Capital (NCWC) 1,568,427,000
Change in NCWC 51,705,000
EBIT 1,575,460,000
Tax Provision 362,880,000
Depreciation and Amortization 510,938,000
Capital Expenditure -553,644,000
Unlevered Free Cash Flow 1,196,181,481

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