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CTLT

Catalent Inc. – Pharmaceutical Preparation Manufacturing
Catalent, Inc., an S&P 500® Company, is the leading global provider of advanced delivery technologies, development, and manufacturing solutions for drugs, biologics, cell and gene therapies, and consumer health products. With over 85 years serving the industry, Catalent has proven expertise in bringing more customer products to market faster, enhancing product performance and ensuring reliable global clinical and commercial product supply. Catalent employs over 14,000 people, including over 2,400 scientists and technicians, at more than 40 facilities across four continents, and in fiscal year 2020 generated over $3 billion in annual revenue. Catalent is headquartered in Somerset, New Jersey.
Analysis Results
Intrinsic Value $217.89
Latest Price $72.36
Relative Value 67% 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 31.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 31.4%, 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)
2023 1.01 0.931
2024 1.32 1.13
2025 1.74 1.38
2026 2.28 1.68
2027 3.0 2.04
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 50.9 billion. This corresponds to a present value of 32.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.16 billion. Adding in the terminal value gives a total present value of 39.2 billion.

There are presently 180.0 million outstanding shares, so the intrinsic value per share is 217.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,916,000,000
Current Cash 538,000,000
Current Liabilities 1,072,000,000
Current Debt 31,000,000
Non-Cash Working Capital (NCWC) 1,337,000,000
Change in NCWC 507,000,000
EBIT 755,000,000
Tax Provision 86,000,000
Depreciation and Amortization 378,000,000
Capital Expenditure -660,000,000
Unlevered Free Cash Flow 872,677,685
Current Assets 2,918,000,000
Current Cash 967,000,000
Current Liabilities 1,196,000,000
Current Debt 75,000,000
Non-Cash Working Capital (NCWC) 830,000,000
Change in NCWC 310,500,000
EBIT 646,000,000
Tax Provision 130,000,000
Depreciation and Amortization 289,000,000
Capital Expenditure -686,000,000
Unlevered Free Cash Flow 442,045,454
Current Assets 2,293,000,000
Current Cash 953,200,000
Current Liabilities 893,200,000
Current Debt 72,900,000
Non-Cash Working Capital (NCWC) 519,500,000
Change in NCWC 63,300,000
EBIT 405,400,000
Tax Provision 39,700,000
Depreciation and Amortization 253,700,000
Capital Expenditure -465,800,000
Unlevered Free Cash Flow 194,793,625
Current Assets 1,395,800,000
Current Cash 345,400,000
Current Liabilities 670,700,000
Current Debt 76,500,000
Non-Cash Working Capital (NCWC) 456,200,000
Change in NCWC 131,100,000
EBIT 293,100,000
Tax Provision 22,900,000
Depreciation and Amortization 228,600,000
Capital Expenditure -218,100,000
Unlevered Free Cash Flow 392,828,571
Current Assets 1,240,300,000
Current Cash 410,200,000
Current Liabilities 576,900,000
Current Debt 71,900,000
Non-Cash Working Capital (NCWC) 325,100,000
Change in NCWC -2,000,000
EBIT 290,000,000
Tax Provision 68,400,000
Depreciation and Amortization 190,100,000
Capital Expenditure -176,500,000
Unlevered Free Cash Flow 171,100,000
Current Assets 1,059,800,000
Current Cash 288,300,000
Current Liabilities 469,000,000
Current Debt 24,600,000
Non-Cash Working Capital (NCWC) 327,100,000
Change in NCWC 39,000,000
EBIT 252,000,000
Tax Provision 25,800,000
Depreciation and Amortization 146,500,000
Capital Expenditure -139,800,000
Unlevered Free Cash Flow 249,753,097
Current Assets 790,200,000
Current Cash 138,600,000
Current Liabilities 391,200,000
Current Debt 27,700,000
Non-Cash Working Capital (NCWC) 288,100,000
Change in NCWC 77,100,000
EBIT 229,500,000
Tax Provision 33,700,000
Depreciation and Amortization 140,600,000
Capital Expenditure -139,600,000
Unlevered Free Cash Flow 254,224,223
Current Assets 737,500,000
Current Cash 151,300,000
Current Liabilities 399,000,000
Current Debt 23,800,000
Non-Cash Working Capital (NCWC) 211,000,000
Change in NCWC 25,700,000
EBIT 278,000,000
Tax Provision -97,700,000
Depreciation and Amortization 140,800,000
Capital Expenditure -141,000,000
Unlevered Free Cash Flow 303,500,000

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