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Cardinal Health, Inc. – Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. With 50 years in business, operations in 46 countries and approximately 48,000 employees globally, Cardinal Health is essential to care.
Analysis Results
Intrinsic Value $281.13
Latest Price $55.80
Relative Value 80% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 16.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.2%, 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 3.63 3.33
2023 4.22 3.55
2024 4.9 3.79
2025 5.7 4.04
2026 6.63 4.31
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 96.6 billion. This corresponds to a present value of 57.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 19.0 billion. Adding in the terminal value gives a total present value of 76.6 billion.

There are presently 272.0 million outstanding shares, so the intrinsic value per share is 281.13.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 31,048,000,000
Current Cash 3,407,000,000
Current Liabilities 27,624,000,000
Current Debt 871,000,000
Non-Cash Working Capital (NCWC) 888,000,000
Change in NCWC 1,324,000,000
EBIT 1,794,000,000
Tax Provision -289,000,000
Depreciation and Amortization 783,000,000
Capital Expenditure -400,000,000
Unlevered Free Cash Flow 3,501,000,000
Current Assets 25,940,000,000
Current Cash 2,771,000,000
Current Liabilities 23,615,000,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) -436,000,000
Change in NCWC 5,000,000
EBIT 1,772,000,000
Tax Provision -79,000,000
Depreciation and Amortization 913,000,000
Capital Expenditure -375,000,000
Unlevered Free Cash Flow 2,315,000,000
Current Assets 25,747,000,000
Current Cash 2,531,000,000
Current Liabilities 24,109,000,000
Current Debt 452,000,000
Non-Cash Working Capital (NCWC) -441,000,000
Change in NCWC -1,339,000,000
EBIT 1,733,000,000
Tax Provision 386,000,000
Depreciation and Amortization 1,000,000,000
Capital Expenditure -328,000,000
Unlevered Free Cash Flow 683,968,018
Current Assets 24,553,000,000
Current Cash 1,763,000,000
Current Liabilities 22,893,000,000
Current Debt 1,001,000,000
Non-Cash Working Capital (NCWC) 898,000,000
Change in NCWC -674,000,000
EBIT 1,878,000,000
Tax Provision -487,000,000
Depreciation and Amortization 1,032,000,000
Capital Expenditure -384,000,000
Unlevered Free Cash Flow 1,852,000,000
Current Assets 28,345,000,000
Current Cash 6,879,000,000
Current Liabilities 21,221,000,000
Current Debt 1,327,000,000
Non-Cash Working Capital (NCWC) 1,572,000,000
Change in NCWC 1,086,000,000
EBIT 2,242,000,000
Tax Provision 630,000,000
Depreciation and Amortization 717,000,000
Capital Expenditure -387,000,000
Unlevered Free Cash Flow 2,923,873,180
Current Assets 21,956,000,000
Current Cash 2,356,000,000
Current Liabilities 19,701,000,000
Current Debt 587,000,000
Non-Cash Working Capital (NCWC) 486,000,000
Change in NCWC 312,000,000
EBIT 2,436,000,000
Tax Provision 845,000,000
Depreciation and Amortization 641,000,000
Capital Expenditure -465,000,000
Unlevered Free Cash Flow 2,019,597,539
Current Assets 21,752,000,000
Current Cash 4,616,000,000
Current Liabilities 17,243,000,000
Current Debt 281,000,000
Non-Cash Working Capital (NCWC) 174,000,000
Change in NCWC -586,000,000
EBIT 2,191,000,000
Tax Provision 755,000,000
Depreciation and Amortization 451,000,000
Capital Expenditure -300,000,000
Unlevered Free Cash Flow 915,021,352
Current Assets 17,939,000,000
Current Cash 2,865,000,000
Current Liabilities 15,115,000,000
Current Debt 801,000,000
Non-Cash Working Capital (NCWC) 760,000,000
Change in NCWC -687,000,000
EBIT 1,910,000,000
Tax Provision 635,000,000
Depreciation and Amortization 459,000,000
Capital Expenditure -249,000,000
Unlevered Free Cash Flow 758,444,938
Current Assets 17,770,000,000
Current Cash 1,901,000,000
Current Liabilities 14,590,000,000
Current Debt 168,000,000
Non-Cash Working Capital (NCWC) 1,447,000,000
Change in NCWC -91,000,000
EBIT 2,046,000,000
Tax Provision 553,000,000
Depreciation and Amortization 397,000,000
Capital Expenditure -195,000,000
Unlevered Free Cash Flow 882,858,108
Current Assets 17,510,000,000
Current Cash 2,274,000,000
Current Liabilities 14,174,000,000
Current Debt 476,000,000
Non-Cash Working Capital (NCWC) 1,538,000,000
Change in NCWC 194,200,000
EBIT 1,864,000,000
Tax Provision 628,000,000
Depreciation and Amortization 325,000,000
Capital Expenditure -263,000,000
Unlevered Free Cash Flow 1,430,805,418

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