DCF Tool

INCY

Incyte Corp. – Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
incyte is a biopharmaceutical company focused on the discovery, development and commercialization of proprietary therapeutics, primarily for oncology. our vision is to become a leader in the development and delivery of novel drugs for serious unmet medical needs. we have established multiple collaborations with major pharmaceutical companies to support the clinical development and global commercialization of several of our compounds. the incyte corporate headquarters is located in wilmington, delaware, and more than 625 employees comprise our experienced management, discovery, clinical development and commercial teams. our assets, experience and prior success in bringing important new drugs to market put us in a strong position to make a difference by improving the lives of patients and building sustainable value for our shareholders. for more information about incyte, please visit our corporate website at www.incyte.com.
Analysis Results
Intrinsic Value $39.48
Latest Price $58.10
Relative Value 47% 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 6.1%. 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 244 230
2024 282 250
2025 325 272
2026 375 296
2027 433 321
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10700 million. This corresponds to a present value of 7480 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1370 million. Adding in the terminal value gives a total present value of 8850 million.

There are presently 224.0 million outstanding shares, so the intrinsic value per share is 39.48.

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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