DCF Tool

HZNP

Horizon Therapeutics Plc – Pharmaceutical Preparation Manufacturing
Horizon is focused on researching, developing and commercializing medicines that address critical needs for people impacted by rare and rheumatic diseases. The Company pipeline is purposeful: it applyie scientific expertise and courages to bring clinically meaningful therapies to patients. The Company believes science and compassion must work together to transform lives.
Analysis Results
Intrinsic Value $505.99
Latest Price $90.35
Relative Value 82% 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 44.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 44.9%, 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 1.56 1.46
2023 2.26 1.99
2024 3.28 2.7
2025 4.75 3.66
2026 6.88 4.98
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 150 billion. This corresponds to a present value of 102 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 14.8 billion. Adding in the terminal value gives a total present value of 116 billion.

There are presently 230.0 million outstanding shares, so the intrinsic value per share is 505.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,799,767,000
Current Cash 1,580,317,000
Current Liabilities 886,571,000
Current Debt 16,000,000
Non-Cash Working Capital (NCWC) 348,879,000
Change in NCWC 234,117,000
EBIT 553,498,000
Tax Provision -71,664,000
Depreciation and Amortization 353,751,000
Capital Expenditure -76,596,000
Unlevered Free Cash Flow 1,064,770,000
Current Assets 3,070,408,000
Current Cash 2,079,906,000
Current Liabilities 875,740,000
Current Debt 0
Non-Cash Working Capital (NCWC) 114,762,000
Change in NCWC 228,115,000
EBIT 485,143,000
Tax Provision 11,849,000
Depreciation and Amortization 279,451,000
Capital Expenditure -169,852,000
Unlevered Free Cash Flow 808,544,710
Current Assets 1,686,103,000
Current Cash 1,076,287,000
Current Liabilities 723,169,000
Current Debt 0
Non-Cash Working Capital (NCWC) -113,353,000
Change in NCWC 58,837,000
EBIT 137,574,000
Tax Provision -593,244,000
Depreciation and Amortization 237,157,000
Capital Expenditure -17,857,000
Unlevered Free Cash Flow 415,711,000
Current Assets 1,548,426,000
Current Cash 958,712,000
Current Liabilities 761,904,000
Current Debt 0
Non-Cash Working Capital (NCWC) -172,190,000
Change in NCWC 95,354,000
EBIT 10,006,000
Tax Provision -44,959,000
Depreciation and Amortization 275,729,000
Capital Expenditure -4,771,000
Unlevered Free Cash Flow 376,318,000
Current Assets 1,230,305,000
Current Cash 751,368,000
Current Liabilities 757,106,000
Current Debt 10,625,000
Non-Cash Working Capital (NCWC) -267,544,000
Change in NCWC -206,669,000
EBIT -392,369,000
Tax Provision -102,749,000
Depreciation and Amortization 283,415,000
Capital Expenditure -4,334,000
Unlevered Free Cash Flow -319,957,000
Current Assets 1,046,282,000
Current Cash 509,055,000
Current Liabilities 605,852,000
Current Debt 7,750,000
Non-Cash Working Capital (NCWC) -60,875,000
Change in NCWC 46,146,000
EBIT -81,167,000
Tax Provision -61,251,000
Depreciation and Amortization 221,837,000
Capital Expenditure -15,731,000
Unlevered Free Cash Flow 171,085,000
Current Assets 1,106,147,000
Current Cash 859,616,000
Current Liabilities 357,552,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) -107,021,000
Change in NCWC -43,381,000
EBIT 55,372,000
Tax Provision -172,244,000
Depreciation and Amortization 138,343,000
Capital Expenditure -7,156,000
Unlevered Free Cash Flow 143,178,000

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