DCF Tool

ICLR

Icon Plc – Research and Development in Biotechnology
ICON plc is a global provider of outsourced drug and device development and commercialisation services to pharmaceutical, biotechnology, medical device and government and public health organisations. The company specialises in the strategic development, management and analysis of programs that support clinical development - from compound selection to Phase I-IV clinical studies. With headquarters in Dublin, Ireland, ICON employed approximately 15,730 employees in 93 locations in 41 countries as at December 31, 2020.
Analysis Results
Intrinsic Value $94.96
Latest Price $198.49
Relative Value 109% overvalued
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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 7.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.5%, 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 424 391
2023 455 388
2024 490 385
2025 527 382
2026 566 379
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9110 million. This corresponds to a present value of 5630 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1930 million. Adding in the terminal value gives a total present value of 7560 million.

There are presently 79.6 million outstanding shares, so the intrinsic value per share is 94.96.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,941,198,000
Current Cash 753,925,000
Current Liabilities 2,478,937,000
Current Debt 55,150,000
Non-Cash Working Capital (NCWC) -236,514,000
Change in NCWC -373,515,000
EBIT 605,736,000
Tax Provision 41,334,000
Depreciation and Amortization 360,326,000
Capital Expenditure -93,750,000
Unlevered Free Cash Flow 370,082,109
Current Assets 2,102,978,000
Current Cash 842,034,000
Current Liabilities 1,123,943,000
Current Debt 0
Non-Cash Working Capital (NCWC) 137,001,000
Change in NCWC -136,430,000
EBIT 409,223,000
Tax Provision 47,875,000
Depreciation and Amortization 94,606,000
Capital Expenditure -51,055,000
Unlevered Free Cash Flow 264,900,867
Current Assets 1,624,980,000
Current Cash 569,937,000
Current Liabilities 1,131,252,000
Current Debt 349,640,000
Non-Cash Working Capital (NCWC) 273,431,000
Change in NCWC 9,632,000
EBIT 433,406,000
Tax Provision 51,133,000
Depreciation and Amortization 91,922,000
Capital Expenditure -50,645,000
Unlevered Free Cash Flow 432,413,548
Current Assets 1,330,183,000
Current Cash 455,761,000
Current Liabilities 610,623,000
Current Debt 0
Non-Cash Working Capital (NCWC) 263,799,000
Change in NCWC 89,287,000
EBIT 385,847,000
Tax Provision 41,958,000
Depreciation and Amortization 65,916,000
Capital Expenditure -48,397,000
Unlevered Free Cash Flow 448,251,609
Current Assets 1,101,018,000
Current Cash 360,448,000
Current Liabilities 566,058,000
Current Debt 0
Non-Cash Working Capital (NCWC) 174,512,000
Change in NCWC -28,453,000
EBIT 346,091,000
Tax Provision 46,569,000
Depreciation and Amortization 61,297,000
Capital Expenditure -44,717,000
Unlevered Free Cash Flow 285,089,001
Current Assets 957,958,000
Current Cash 260,587,000
Current Liabilities 494,406,000
Current Debt 0
Non-Cash Working Capital (NCWC) 202,965,000
Change in NCWC 100,233,000
EBIT 319,853,000
Tax Provision 37,993,000
Depreciation and Amortization 59,575,000
Capital Expenditure -42,601,000
Unlevered Free Cash Flow 396,575,960
Current Assets 864,433,000
Current Cash 189,901,000
Current Liabilities 571,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 102,732,000
Change in NCWC 37,584,000
EBIT 281,536,000
Tax Provision 39,311,000
Depreciation and Amortization 57,677,000
Capital Expenditure -49,730,000
Unlevered Free Cash Flow 287,377,339
Current Assets 819,507,000
Current Cash 216,000,000
Current Liabilities 538,359,000
Current Debt 0
Non-Cash Working Capital (NCWC) 65,148,000
Change in NCWC 33,725,000
EBIT 211,146,000
Tax Provision 30,248,000
Depreciation and Amortization 52,542,000
Capital Expenditure -32,779,000
Unlevered Free Cash Flow 233,128,128
Current Assets 853,428,000
Current Cash 320,836,000
Current Liabilities 501,169,000
Current Debt 0
Non-Cash Working Capital (NCWC) 31,423,000
Change in NCWC -28,673,000
EBIT 130,200,000
Tax Provision 18,053,000
Depreciation and Amortization 46,514,000
Capital Expenditure -29,488,000
Unlevered Free Cash Flow 99,105,677
Current Assets 663,748,000
Current Cash 190,230,000
Current Liabilities 413,422,000
Current Debt 0
Non-Cash Working Capital (NCWC) 60,096,000
Change in NCWC -19,241,000
EBIT 73,653,000
Tax Provision 11,801,000
Depreciation and Amortization 42,823,000
Capital Expenditure -30,791,000
Unlevered Free Cash Flow 53,513,828

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