DCF Tool

BDX

Becton Dickinson & Co. – Surgical and Medical Instrument Manufacturing
Becton, Dickinson and Company is a global medical technology company. The Company is engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions, physicians, life science researchers, and others.
Analysis Results
Intrinsic Value $521.84
Latest Price $235.60
Relative Value 55% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 11.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.3%, 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)
2024 4.51 4.25
2025 5.02 4.47
2026 5.58 4.7
2027 6.21 4.94
2028 6.92 5.19
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 180 billion. This corresponds to a present value of 127 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 23.5 billion. Adding in the terminal value gives a total present value of 151 billion.

There are presently 289.0 million outstanding shares, so the intrinsic value per share is 521.84.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,676,000,000
Current Cash 1,424,000,000
Current Liabilities 6,640,000,000
Current Debt 1,141,000,000
Non-Cash Working Capital (NCWC) 1,753,000,000
Change in NCWC 258,000,000
EBIT 2,196,000,000
Tax Provision 132,000,000
Depreciation and Amortization 2,288,000,000
Capital Expenditure -874,000,000
Unlevered Free Cash Flow 3,693,588,447
Current Assets 8,141,000,000
Current Cash 1,014,000,000
Current Liabilities 7,811,000,000
Current Debt 2,179,000,000
Non-Cash Working Capital (NCWC) 1,495,000,000
Change in NCWC 1,077,000,000
EBIT 2,516,000,000
Tax Provision 148,000,000
Depreciation and Amortization 2,229,000,000
Capital Expenditure -973,000,000
Unlevered Free Cash Flow 4,640,390,476
Current Assets 8,839,000,000
Current Cash 2,295,000,000
Current Liabilities 6,626,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) 418,000,000
Change in NCWC -576,000,000
EBIT 2,983,000,000
Tax Provision 150,000,000
Depreciation and Amortization 2,273,000,000
Capital Expenditure -1,231,000,000
Unlevered Free Cash Flow 3,249,334,672
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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.