DCF Tool

GMED

Globus Medical Inc – Surgical and Medical Instrument Manufacturing
Based in Audubon, Pennsylvania, Globus Medical, Inc. was founded in 2003 by an experienced team of professionals with a shared vision to create products that enable surgeons to promote healing in patients with musculoskeletal disorders.
Analysis Results
Intrinsic Value $79.32
Latest Price $74.95
Relative Value 6% undervalued
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Cash Flow (Millions)
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 9.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.4%, 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 (million) Present value (million)
2022 196 190
2023 215 201
2024 235 212
2025 257 224
2026 281 237
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 8440 million. This corresponds to a present value of 6860 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1060 million. Adding in the terminal value gives a total present value of 7920 million.

There are presently 99.8 million outstanding shares, so the intrinsic value per share is 79.32.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 864,516,000
Current Cash 443,447,000
Current Liabilities 140,164,000
Current Debt 0
Non-Cash Working Capital (NCWC) 280,905,000
Change in NCWC 6,673,000
EBIT 194,858,000
Tax Provision 31,216,000
Depreciation and Amortization 69,867,000
Capital Expenditure -56,898,000
Unlevered Free Cash Flow 180,783,529
Current Assets 821,765,000
Current Cash 426,741,000
Current Liabilities 120,792,000
Current Debt 0
Non-Cash Working Capital (NCWC) 274,232,000
Change in NCWC 9,654,000
EBIT 115,472,000
Tax Provision 23,614,000
Depreciation and Amortization 62,874,000
Capital Expenditure -63,658,000
Unlevered Free Cash Flow 102,683,719
Current Assets 687,468,000
Current Cash 311,487,000
Current Liabilities 111,403,000
Current Debt 0
Non-Cash Working Capital (NCWC) 264,578,000
Change in NCWC 69,699,000
EBIT 176,754,000
Tax Provision 34,736,000
Depreciation and Amortization 52,734,000
Capital Expenditure -70,750,000
Unlevered Free Cash Flow 196,113,460
Current Assets 630,681,000
Current Cash 339,684,000
Current Liabilities 96,118,000
Current Debt 0
Non-Cash Working Capital (NCWC) 194,879,000
Change in NCWC 41,317,000
EBIT 176,884,000
Tax Provision 32,131,000
Depreciation and Amortization 41,630,000
Capital Expenditure -59,697,000
Unlevered Free Cash Flow 169,999,805
Current Assets 620,342,000
Current Cash 373,707,000
Current Liabilities 93,073,000
Current Debt 0
Non-Cash Working Capital (NCWC) 153,562,000
Change in NCWC 10,000,000
EBIT 163,451,000
Tax Provision 62,580,000
Depreciation and Amortization 42,067,000
Capital Expenditure -51,303,000
Unlevered Free Cash Flow 104,020,308
Current Assets 513,766,000
Current Cash 290,312,000
Current Liabilities 79,892,000
Current Debt 0
Non-Cash Working Capital (NCWC) 143,562,000
Change in NCWC -37,517,000
EBIT 155,967,000
Tax Provision 52,938,000
Depreciation and Amortization 38,771,000
Capital Expenditure -40,909,000
Unlevered Free Cash Flow 63,815,601
Current Assets 544,799,000
Current Cash 281,029,000
Current Liabilities 82,691,000
Current Debt 0
Non-Cash Working Capital (NCWC) 181,079,000
Change in NCWC 29,170,000
EBIT 172,222,000
Tax Provision 60,021,000
Depreciation and Amortization 24,084,000
Capital Expenditure -50,760,000
Unlevered Free Cash Flow 114,897,495
Current Assets 470,025,000
Current Cash 228,704,000
Current Liabilities 89,412,000
Current Debt 0
Non-Cash Working Capital (NCWC) 151,909,000
Change in NCWC 41,967,000
EBIT 138,362,000
Tax Provision 46,157,000
Depreciation and Amortization 21,754,000
Capital Expenditure -24,754,000
Unlevered Free Cash Flow 131,265,218
Current Assets 416,808,000
Current Cash 238,924,000
Current Liabilities 67,942,000
Current Debt 0
Non-Cash Working Capital (NCWC) 109,942,000
Change in NCWC 1,740,000
EBIT 101,673,000
Tax Provision 33,389,000
Depreciation and Amortization 19,397,000
Capital Expenditure -23,680,000
Unlevered Free Cash Flow 65,848,367

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