DCF Tool

BHC

Bausch Health Companies Inc – Pharmaceutical Preparation Manufacturing
Bausch Health Companies Inc. (NYSE/TSX: BHC) is a global company whose mission is to improve people's lives with our health care products. We develop, manufacture and market a range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology. We are delivering on our commitments as we build an innovative company dedicated to advancing global health.
Analysis Results
Intrinsic Value $106.55
Latest Price $9.93
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 0.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 0.1%, 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 3.05 2.8
2023 3.05 2.57
2024 3.06 2.36
2025 3.06 2.17
2026 3.06 1.99
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 44.6 billion. This corresponds to a present value of 26.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.9 billion. Adding in the terminal value gives a total present value of 38.5 billion.

There are presently 361.0 million outstanding shares, so the intrinsic value per share is 106.55.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,607,000,000
Current Cash 582,000,000
Current Liabilities 5,198,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -173,000,000
Change in NCWC 3,000,000
EBIT 1,576,000,000
Tax Provision -87,000,000
Depreciation and Amortization 1,552,000,000
Capital Expenditure -269,000,000
Unlevered Free Cash Flow 2,862,000,000
Current Assets 5,342,000,000
Current Cash 605,000,000
Current Liabilities 4,913,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -176,000,000
Change in NCWC 1,112,000,000
EBIT 1,314,000,000
Tax Provision -375,000,000
Depreciation and Amortization 1,825,000,000
Capital Expenditure -302,000,000
Unlevered Free Cash Flow 3,949,000,000
Current Assets 6,969,000,000
Current Cash 3,243,000,000
Current Liabilities 6,248,000,000
Current Debt 1,234,000,000
Non-Cash Working Capital (NCWC) -1,288,000,000
Change in NCWC -1,170,000,000
EBIT 1,329,000,000
Tax Provision -54,000,000
Depreciation and Amortization 2,075,000,000
Capital Expenditure -270,000,000
Unlevered Free Cash Flow 1,964,000,000
Current Assets 4,211,000,000
Current Cash 721,000,000
Current Liabilities 3,836,000,000
Current Debt 228,000,000
Non-Cash Working Capital (NCWC) -118,000,000
Change in NCWC -85,000,000
EBIT 499,000,000
Tax Provision -10,000,000
Depreciation and Amortization 2,819,000,000
Capital Expenditure -157,000,000
Unlevered Free Cash Flow 3,076,000,000
Current Assets 4,746,000,000
Current Cash 720,000,000
Current Liabilities 4,268,000,000
Current Debt 209,000,000
Non-Cash Working Capital (NCWC) -33,000,000
Change in NCWC -966,000,000
EBIT 543,000,000
Tax Provision -4,145,000,000
Depreciation and Amortization 2,858,000,000
Capital Expenditure -171,000,000
Unlevered Free Cash Flow 2,264,000,000
Current Assets 5,077,000,000
Current Cash 542,000,000
Current Liabilities 3,609,000,000
Current Debt 7,000,000
Non-Cash Working Capital (NCWC) 933,000,000
Change in NCWC 497,200,000
EBIT 1,159,000,000
Tax Provision -27,000,000
Depreciation and Amortization 2,866,000,000
Capital Expenditure -235,000,000
Unlevered Free Cash Flow 4,287,200,000
Current Assets 5,507,200,000
Current Cash 597,300,000
Current Liabilities 5,312,600,000
Current Debt 838,500,000
Non-Cash Working Capital (NCWC) 435,800,000
Change in NCWC -711,000,000
EBIT 2,409,300,000
Tax Provision 132,500,000
Depreciation and Amortization 2,627,500,000
Capital Expenditure -235,200,000
Unlevered Free Cash Flow 4,090,600,000
Current Assets 4,193,100,000
Current Cash 322,600,000
Current Liabilities 2,730,800,000
Current Debt 7,100,000
Non-Cash Working Capital (NCWC) 1,146,800,000
Change in NCWC 156,810,000
EBIT 2,185,900,000
Tax Provision 180,400,000
Depreciation and Amortization 1,737,600,000
Capital Expenditure -291,600,000
Unlevered Free Cash Flow 3,427,794,422
Current Assets 3,885,889,000
Current Cash 600,340,000
Current Liabilities 2,512,396,000
Current Debt 216,837,000
Non-Cash Working Capital (NCWC) 989,990,000
Change in NCWC 465,062,000
EBIT 500,561,000
Tax Provision -450,783,000
Depreciation and Amortization 2,015,806,000
Capital Expenditure -115,319,000
Unlevered Free Cash Flow 2,866,110,000
Current Assets 2,777,451,000
Current Cash 920,501,000
Current Liabilities 1,822,752,000
Current Debt 490,730,000
Non-Cash Working Capital (NCWC) 524,928,000
Change in NCWC 150,893,000
EBIT 744,090,000
Tax Provision -278,203,000
Depreciation and Amortization 986,222,000
Capital Expenditure -107,638,000
Unlevered Free Cash Flow 1,773,567,000

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