DCF Tool

EBS

Emergent Biosolutions Inc – Pharmaceutical Preparation Manufacturing
Emergent BioSolutions is a global life sciences company whose mission is to protect and enhance life. Through their specialty products and contract development and manufacturing services, the company is dedicated to providing solutions that address public health threats. Through social responsibility, Emergent BioSolutions aims to build healthier and safer communities. The company aspires to deliver peace of mind to theis patients and customers so they can focus on what's most important in their lives. In working together, Emergent envisions protecting or enhancing 1 billion lives by 2030.
Analysis Results
Intrinsic Value $367.56
Latest Price $35.33
Relative Value 90% 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 28.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 28.7%, 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 0.384 0.36
2023 0.494 0.434
2024 0.635 0.524
2025 0.817 0.632
2026 1.05 0.763
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.2 billion. This corresponds to a present value of 15.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.71 billion. Adding in the terminal value gives a total present value of 18.5 billion.

There are presently 50.2 million outstanding shares, so the intrinsic value per share is 367.56.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,272,100,000
Current Cash 576,100,000
Current Liabilities 373,800,000
Current Debt 31,600,000
Non-Cash Working Capital (NCWC) 353,800,000
Change in NCWC 129,900,000
EBIT 394,300,000
Tax Provision 83,500,000
Depreciation and Amortization 123,800,000
Capital Expenditure -225,000,000
Unlevered Free Cash Flow 318,279,739
Current Assets 1,195,900,000
Current Cash 621,300,000
Current Liabilities 384,500,000
Current Debt 33,800,000
Non-Cash Working Capital (NCWC) 223,900,000
Change in NCWC -91,100,000
EBIT 433,800,000
Tax Provision 102,100,000
Depreciation and Amortization 114,500,000
Capital Expenditure -141,000,000
Unlevered Free Cash Flow 207,430,402
Current Assets 686,200,000
Current Cash 167,800,000
Current Liabilities 216,300,000
Current Debt 12,900,000
Non-Cash Working Capital (NCWC) 315,000,000
Change in NCWC -3,300,000
EBIT 114,100,000
Tax Provision 22,900,000
Depreciation and Amortization 110,700,000
Capital Expenditure -86,900,000
Unlevered Free Cash Flow 100,841,731
Current Assets 620,800,000
Current Cash 112,200,000
Current Liabilities 200,400,000
Current Debt 10,100,000
Non-Cash Working Capital (NCWC) 318,300,000
Change in NCWC 111,271,000
EBIT 89,800,000
Tax Provision 18,800,000
Depreciation and Amortization 62,200,000
Capital Expenditure -72,100,000
Unlevered Free Cash Flow 170,456,398
Current Assets 485,389,000
Current Cash 178,292,000
Current Liabilities 100,068,000
Current Debt 0
Non-Cash Working Capital (NCWC) 207,029,000
Change in NCWC 54,180,000
EBIT 124,285,000
Tax Provision 36,039,000
Depreciation and Amortization 42,572,000
Capital Expenditure -54,828,000
Unlevered Free Cash Flow 128,453,003
Current Assets 510,218,000
Current Cash 271,513,000
Current Liabilities 105,856,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 152,849,000
Change in NCWC 26,643,000
EBIT 105,522,000
Tax Provision 36,697,000
Depreciation and Amortization 38,229,000
Capital Expenditure -76,257,000
Unlevered Free Cash Flow 55,109,567
Current Assets 538,612,000
Current Cash 312,795,000
Current Liabilities 99,611,000
Current Debt 0
Non-Cash Working Capital (NCWC) 126,206,000
Change in NCWC 67,466,000
EBIT 96,039,000
Tax Provision 26,899,000
Depreciation and Amortization 35,335,000
Capital Expenditure -44,812,000
Unlevered Free Cash Flow 125,250,214
Current Assets 432,175,000
Current Cash 280,499,000
Current Liabilities 92,936,000
Current Debt 0
Non-Cash Working Capital (NCWC) 58,740,000
Change in NCWC 21,614,000
EBIT 58,056,000
Tax Provision 16,321,000
Depreciation and Amortization 32,453,000
Capital Expenditure -30,673,000
Unlevered Free Cash Flow 63,592,927
Current Assets 273,115,000
Current Cash 179,338,000
Current Liabilities 56,651,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,126,000
Change in NCWC -27,118,000
EBIT 42,802,000
Tax Provision 13,108,000
Depreciation and Amortization 18,958,000
Capital Expenditure -42,021,000
Unlevered Free Cash Flow -20,316,224
Current Assets 263,347,000
Current Cash 141,666,000
Current Liabilities 61,907,000
Current Debt 4,470,000
Non-Cash Working Capital (NCWC) 64,244,000
Change in NCWC 21,387,000
EBIT 39,567,000
Tax Provision 13,922,000
Depreciation and Amortization 11,197,000
Capital Expenditure -53,845,000
Unlevered Free Cash Flow 1,126,777

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