DCF Tool

IQV

IQVIA Holdings Inc – Offices of All Other Miscellaneous Health Practitioners
IQVIA is a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry. IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources and extensive domain expertise. IQVIA Connected Intelligenceā„¢ delivers powerful insights with speed and agility - enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients. With approximately 70,000 employees, IQVIA conducts operations in more than 100 countries.
Analysis Results
Intrinsic Value $153.16
Latest Price $207.73
Relative Value 36% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 10.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.1%, 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 1.35 1.25
2023 1.48 1.28
2024 1.63 1.3
2025 1.8 1.33
2026 1.98 1.36
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 35.1 billion. This corresponds to a present value of 22.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.53 billion. Adding in the terminal value gives a total present value of 29.0 billion.

There are presently 189.0 million outstanding shares, so the intrinsic value per share is 153.16.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,763,000,000
Current Cash 1,366,000,000
Current Liabilities 5,241,000,000
Current Debt 91,000,000
Non-Cash Working Capital (NCWC) -1,753,000,000
Change in NCWC -620,000,000
EBIT 1,419,000,000
Tax Provision 163,000,000
Depreciation and Amortization 1,264,000,000
Capital Expenditure -640,000,000
Unlevered Free Cash Flow 1,219,034,391
Current Assets 5,090,000,000
Current Cash 1,814,000,000
Current Liabilities 4,558,000,000
Current Debt 149,000,000
Non-Cash Working Capital (NCWC) -1,133,000,000
Change in NCWC -577,000,000
EBIT 790,000,000
Tax Provision 72,000,000
Depreciation and Amortization 1,287,000,000
Capital Expenditure -616,000,000
Unlevered Free Cash Flow 734,315,789
Current Assets 4,126,000,000
Current Cash 837,000,000
Current Liabilities 3,945,000,000
Current Debt 100,000,000
Non-Cash Working Capital (NCWC) -556,000,000
Change in NCWC -105,000,000
EBIT 843,000,000
Tax Provision 116,000,000
Depreciation and Amortization 1,202,000,000
Capital Expenditure -582,000,000
Unlevered Free Cash Flow 1,072,903,790
Current Assets 3,874,000,000
Current Cash 891,000,000
Current Liabilities 3,534,000,000
Current Debt 100,000,000
Non-Cash Working Capital (NCWC) -451,000,000
Change in NCWC -141,000,000
EBIT 824,000,000
Tax Provision 59,000,000
Depreciation and Amortization 1,141,000,000
Capital Expenditure -459,000,000
Unlevered Free Cash Flow 1,223,262,390
Current Assets 3,450,000,000
Current Cash 959,000,000
Current Liabilities 2,904,000,000
Current Debt 103,000,000
Non-Cash Working Capital (NCWC) -310,000,000
Change in NCWC 164,000,000
EBIT 832,000,000
Tax Provision -987,000,000
Depreciation and Amortization 1,011,000,000
Capital Expenditure -369,000,000
Unlevered Free Cash Flow 1,638,000,000
Current Assets 3,337,000,000
Current Cash 1,198,000,000
Current Liabilities 2,705,000,000
Current Debt 92,000,000
Non-Cash Working Capital (NCWC) -474,000,000
Change in NCWC -363,171,000
EBIT 824,000,000
Tax Provision 345,000,000
Depreciation and Amortization 289,000,000
Capital Expenditure -164,000,000
Unlevered Free Cash Flow -12,655,210
Current Assets 2,411,985,000
Current Cash 977,151,000
Current Liabilities 1,594,176,000
Current Debt 48,513,000
Non-Cash Working Capital (NCWC) -110,829,000
Change in NCWC 81,520,000
EBIT 688,146,000
Tax Provision 158,989,000
Depreciation and Amortization 127,742,000
Capital Expenditure -78,391,000
Unlevered Free Cash Flow 619,110,104
Current Assets 2,146,083,000
Current Cash 867,358,000
Current Liabilities 1,471,900,000
Current Debt 826,000
Non-Cash Working Capital (NCWC) -192,349,000
Change in NCWC 111,920,000
EBIT 603,746,000
Tax Provision 150,056,000
Depreciation and Amortization 121,013,000
Capital Expenditure -82,650,000
Unlevered Free Cash Flow 575,182,967
Current Assets 1,945,688,000
Current Cash 778,143,000
Current Liabilities 1,482,247,000
Current Debt 10,433,000
Non-Cash Working Capital (NCWC) -304,269,000
Change in NCWC 6,752,000
EBIT 475,280,000
Tax Provision 95,965,000
Depreciation and Amortization 107,504,000
Capital Expenditure -92,346,000
Unlevered Free Cash Flow 355,539,756

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.