DCF Tool

BSX

Boston Scientific Corp. – Surgical and Medical Instrument Manufacturing
Boston Scientific transforms lives through innovative medical solutions that improve the health of patients around the world. As a global medical technology leader for more than 40 years, The company advances science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of healthcare.
Analysis Results
Intrinsic Value $21.80
Latest Price $38.14
Relative Value 75% overvalued
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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 3.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.7%, 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 1.7 1.59
2023 1.77 1.53
2024 1.83 1.48
2025 1.9 1.42
2026 1.97 1.37
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 36.7 billion. This corresponds to a present value of 23.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.39 billion. Adding in the terminal value gives a total present value of 31.2 billion.

There are presently 1.43 billion outstanding shares, so the intrinsic value per share is 21.8.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,317,000,000
Current Cash 1,925,000,000
Current Liabilities 4,275,000,000
Current Debt 261,000,000
Non-Cash Working Capital (NCWC) 378,000,000
Change in NCWC -914,000,000
EBIT 1,824,000,000
Tax Provision 36,000,000
Depreciation and Amortization 1,093,000,000
Capital Expenditure -554,000,000
Unlevered Free Cash Flow 1,387,917,209
Current Assets 6,694,000,000
Current Cash 1,734,000,000
Current Liabilities 3,681,000,000
Current Debt 13,000,000
Non-Cash Working Capital (NCWC) 1,292,000,000
Change in NCWC 261,000,000
EBIT 684,000,000
Tax Provision 2,000,000
Depreciation and Amortization 1,123,000,000
Capital Expenditure -376,000,000
Unlevered Free Cash Flow 1,692,000,000
Current Assets 4,699,000,000
Current Cash 217,000,000
Current Liabilities 4,867,000,000
Current Debt 1,416,000,000
Non-Cash Working Capital (NCWC) 1,031,000,000
Change in NCWC 183,000,000
EBIT 1,740,000,000
Tax Provision -4,013,000,000
Depreciation and Amortization 1,011,000,000
Capital Expenditure -461,000,000
Unlevered Free Cash Flow 2,473,000,000
Current Assets 4,002,000,000
Current Cash 146,000,000
Current Liabilities 5,261,000,000
Current Debt 2,253,000,000
Non-Cash Working Capital (NCWC) 848,000,000
Change in NCWC 1,066,000,000
EBIT 1,659,000,000
Tax Provision -250,000,000
Depreciation and Amortization 894,000,000
Capital Expenditure -316,000,000
Unlevered Free Cash Flow 3,303,000,000
Current Assets 3,823,000,000
Current Cash 188,000,000
Current Liabilities 5,654,000,000
Current Debt 1,801,000,000
Non-Cash Working Capital (NCWC) -218,000,000
Change in NCWC 262,000,000
EBIT 1,531,000,000
Tax Provision 829,000,000
Depreciation and Amortization 844,000,000
Capital Expenditure -319,000,000
Unlevered Free Cash Flow 956,198,497
Current Assets 3,239,000,000
Current Cash 196,000,000
Current Liabilities 3,587,000,000
Current Debt 64,000,000
Non-Cash Working Capital (NCWC) -480,000,000
Change in NCWC -1,205,000,000
EBIT 1,319,000,000
Tax Provision -170,000,000
Depreciation and Amortization 815,000,000
Capital Expenditure -376,000,000
Unlevered Free Cash Flow 553,000,000
Current Assets 3,471,000,000
Current Cash 319,000,000
Current Liabilities 2,430,000,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) 725,000,000
Change in NCWC 149,000,000
EBIT 990,000,000
Tax Provision -411,000,000
Depreciation and Amortization 769,000,000
Capital Expenditure -247,000,000
Unlevered Free Cash Flow 1,661,000,000
Current Assets 3,606,000,000
Current Cash 587,000,000
Current Liabilities 2,846,000,000
Current Debt 403,000,000
Non-Cash Working Capital (NCWC) 576,000,000
Change in NCWC -397,000,000
EBIT 902,000,000
Tax Provision -390,000,000
Depreciation and Amortization 725,000,000
Capital Expenditure -259,000,000
Unlevered Free Cash Flow 971,000,000
Current Assets 3,011,000,000
Current Cash 217,000,000
Current Liabilities 1,824,000,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) 973,000,000
Change in NCWC -74,000,000
EBIT 884,000,000
Tax Provision -102,000,000
Depreciation and Amortization 689,000,000
Capital Expenditure -245,000,000
Unlevered Free Cash Flow 1,254,000,000
Current Assets 3,022,000,000
Current Cash 207,000,000
Current Liabilities 1,772,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 1,047,000,000
Change in NCWC 12,000,000
EBIT 931,000,000
Tax Provision -39,000,000
Depreciation and Amortization 683,000,000
Capital Expenditure -226,000,000
Unlevered Free Cash Flow 1,400,000,000

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