DCF Tool

INCY

Incyte Corp. – Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Incyte is a Wilmington, Delaware-based, global biopharmaceutical company focused on finding solutions for serious unmet medical needs through the discovery, development and commercialization of proprietary therapeutics.
Analysis Results
Intrinsic Value $54.33
Latest Price $73.49
Relative Value 35% 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 15.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.4%, 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)
2023 244 236
2024 282 264
2025 325 294
2026 375 328
2027 433 366
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 13000 million. This corresponds to a present value of 10600 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1490 million. Adding in the terminal value gives a total present value of 12100 million.

There are presently 223.0 million outstanding shares, so the intrinsic value per share is 54.33.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,092,850,000
Current Cash 3,238,965,000
Current Liabilities 1,157,077,000
Current Debt 3,179,000
Non-Cash Working Capital (NCWC) -300,013,000
Change in NCWC -218,822,000
EBIT 599,562,000
Tax Provision 188,456,000
Depreciation and Amortization 67,855,000
Capital Expenditure -77,833,000
Unlevered Free Cash Flow 157,215,147
Current Assets 3,118,674,000
Current Cash 2,348,192,000
Current Liabilities 854,308,000
Current Debt 2,635,000
Non-Cash Working Capital (NCWC) -81,191,000
Change in NCWC -10,797,000
EBIT 637,537,000
Tax Provision -378,137,000
Depreciation and Amortization 57,844,000
Capital Expenditure -181,006,000
Unlevered Free Cash Flow 503,578,000
Current Assets 2,359,894,000
Current Cash 1,801,377,000
Current Liabilities 631,195,000
Current Debt 2,284,000
Non-Cash Working Capital (NCWC) -70,394,000
Change in NCWC 60,048,000
EBIT -197,490,000
Tax Provision 63,479,000
Depreciation and Amortization 51,807,000
Capital Expenditure -187,379,000
Unlevered Free Cash Flow -273,014,000
Current Assets 2,481,488,000
Current Cash 2,117,554,000
Current Liabilities 513,340,000
Current Debt 18,964,000
Non-Cash Working Capital (NCWC) -130,442,000
Change in NCWC -117,792,000
EBIT 421,688,000
Tax Provision 39,885,000
Depreciation and Amortization 54,533,000
Capital Expenditure -78,064,000
Unlevered Free Cash Flow 245,814,184
Current Assets 1,832,254,000
Current Cash 1,438,323,000
Current Liabilities 425,277,000
Current Debt 18,696,000
Non-Cash Working Capital (NCWC) -12,650,000
Change in NCWC 20,144,000
EBIT 155,396,000
Tax Provision 5,854,000
Depreciation and Amortization 54,969,000
Capital Expenditure -73,483,000
Unlevered Free Cash Flow 149,139,464
Current Assets 1,504,854,000
Current Cash 1,169,645,000
Current Liabilities 375,396,000
Current Debt 7,393,000
Non-Cash Working Capital (NCWC) -32,794,000
Change in NCWC 55,075,000
EBIT -236,030,000
Tax Provision 852,000
Depreciation and Amortization 52,178,000
Capital Expenditure -111,021,000
Unlevered Free Cash Flow -239,798,000
Current Assets 994,178,000
Current Cash 808,546,000
Current Liabilities 273,501,000
Current Debt 0
Non-Cash Working Capital (NCWC) -87,869,000
Change in NCWC -54,454,000
EBIT 162,420,000
Tax Provision 3,182,000
Depreciation and Amortization 58,425,000
Capital Expenditure -120,277,000
Unlevered Free Cash Flow 41,302,070
Current Assets 842,375,000
Current Cash 707,783,000
Current Liabilities 168,007,000
Current Debt 0
Non-Cash Working Capital (NCWC) -33,415,000
Change in NCWC 3,509,000
EBIT 50,651,000
Tax Provision 1,025,000
Depreciation and Amortization 44,883,000
Capital Expenditure -26,003,000
Unlevered Free Cash Flow 66,169,000
Current Assets 699,214,000
Current Cash 600,263,000
Current Liabilities 221,515,000
Current Debt 85,640,000
Non-Cash Working Capital (NCWC) -36,924,000
Change in NCWC 24,323,000
EBIT -4,804,000
Tax Provision -66,000
Depreciation and Amortization 41,413,000
Capital Expenditure -27,876,000
Unlevered Free Cash Flow 33,056,000
Current Assets 555,799,000
Current Cash 509,004,000
Current Liabilities 108,042,000
Current Debt 0
Non-Cash Working Capital (NCWC) -61,247,000
Change in NCWC -6,269,000
EBIT -16,102,000
Tax Provision 299,000
Depreciation and Amortization 29,207,000
Capital Expenditure -4,267,000
Unlevered Free Cash Flow 2,569,000
Current Assets 309,514,000
Current Cash 228,418,000
Current Liabilities 136,074,000
Current Debt 0
Non-Cash Working Capital (NCWC) -54,978,000
Change in NCWC 47,452,000
EBIT 1,148,000
Tax Provision 174,000
Depreciation and Amortization 29,979,000
Capital Expenditure -2,839,000
Unlevered Free Cash Flow 75,740,000

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