DCF Tool

JAZZ

Jazz Pharmaceuticals plc – Pharmaceutical Preparation Manufacturing
Jazz Pharmaceuticals plc is a global biopharmaceutical company dedicated to developing and commercializing life-changing medicines that transform the lives of patients with serious diseases - often with limited or no options. Jazz Pharmaceuticals plc has a diverse portfolio of marketed medicines and novel product candidates, from early- to late-stage development, in key therapeutic areas. The company's focus is in neuroscience, including sleep and movement disorders, and in oncology, including hematologic and solid tumors. They actively explore new options for patients including novel compounds, small molecule advancements, biologics and innovative delivery technologies. Jazz is headquartered in Dublin, Ireland and has employees around the globe, serving patients in more than 90 countries.
Analysis Results
Intrinsic Value $1,402.77
Latest Price $158.72
Relative Value 89% 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 23.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.7%, 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 1.89 1.78
2023 2.34 2.08
2024 2.9 2.42
2025 3.59 2.82
2026 4.44 3.29
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 108 billion. This corresponds to a present value of 75.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.4 billion. Adding in the terminal value gives a total present value of 87.6 billion.

There are presently 62.4 million outstanding shares, so the intrinsic value per share is 1402.77.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,611,334,000
Current Cash 591,448,000
Current Liabilities 809,303,000
Current Debt 31,000,000
Non-Cash Working Capital (NCWC) 1,241,583,000
Change in NCWC 942,207,000
EBIT 169,564,000
Tax Provision 216,116,000
Depreciation and Amortization 552,483,000
Capital Expenditure -45,532,000
Unlevered Free Cash Flow 1,618,722,000
Current Assets 2,839,568,000
Current Cash 2,132,769,000
Current Liabilities 653,745,000
Current Debt 246,322,000
Non-Cash Working Capital (NCWC) 299,376,000
Change in NCWC 77,555,000
EBIT 762,500,000
Tax Provision 33,517,000
Depreciation and Amortization 278,253,000
Capital Expenditure -128,004,000
Unlevered Free Cash Flow 896,391,418
Current Assets 1,630,268,000
Current Cash 1,077,344,000
Current Liabilities 364,490,000
Current Debt 33,387,000
Non-Cash Working Capital (NCWC) 221,821,000
Change in NCWC 124,538,000
EBIT 638,260,000
Tax Provision -73,154,000
Depreciation and Amortization 370,156,000
Capital Expenditure -40,135,000
Unlevered Free Cash Flow 1,092,819,000
Current Assets 1,234,005,000
Current Cash 824,622,000
Current Liabilities 345,487,000
Current Debt 33,387,000
Non-Cash Working Capital (NCWC) 97,283,000
Change in NCWC -16,617,000
EBIT 655,531,000
Tax Provision 80,162,000
Depreciation and Amortization 216,731,000
Capital Expenditure -20,370,000
Unlevered Free Cash Flow 735,611,312
Current Assets 968,277,000
Current Cash 601,035,000
Current Liabilities 293,947,000
Current Debt 40,605,000
Non-Cash Working Capital (NCWC) 113,900,000
Change in NCWC 13,106,000
EBIT 612,833,000
Tax Provision -47,740,000
Depreciation and Amortization 165,154,000
Capital Expenditure -28,950,000
Unlevered Free Cash Flow 762,143,000
Current Assets 748,069,000
Current Cash 425,963,000
Current Liabilities 257,406,000
Current Debt 36,094,000
Non-Cash Working Capital (NCWC) 100,794,000
Change in NCWC 20,967,000
EBIT 615,025,000
Tax Provision 135,236,000
Depreciation and Amortization 113,780,000
Capital Expenditure -157,832,000
Unlevered Free Cash Flow 435,618,482
Current Assets 1,257,667,000
Current Cash 988,785,000
Current Liabilities 226,642,000
Current Debt 37,587,000
Non-Cash Working Capital (NCWC) 79,827,000
Change in NCWC -44,603,000
EBIT 539,743,000
Tax Provision 106,399,000
Depreciation and Amortization 108,056,000
Capital Expenditure -35,958,000
Unlevered Free Cash Flow 435,501,895
Current Assets 1,015,845,000
Current Cash 684,042,000
Current Liabilities 216,801,000
Current Debt 9,428,000
Non-Cash Working Capital (NCWC) 124,430,000
Change in NCWC 94,773,000
EBIT 437,578,000
Tax Provision 94,231,000
Depreciation and Amortization 133,681,000
Capital Expenditure -36,347,000
Unlevered Free Cash Flow 357,619,621
Current Assets 864,617,000
Current Cash 636,504,000
Current Liabilities 204,028,000
Current Debt 5,572,000
Non-Cash Working Capital (NCWC) 29,657,000
Change in NCWC 27,131,000
EBIT 340,312,000
Tax Provision 91,638,000
Depreciation and Amortization 82,090,000
Capital Expenditure -11,276,000
Unlevered Free Cash Flow 336,988,901
Current Assets 551,572,000
Current Cash 387,196,000
Current Liabilities 191,538,000
Current Debt 29,688,000
Non-Cash Working Capital (NCWC) 2,526,000
Change in NCWC 14,163,000
EBIT 197,844,000
Tax Provision -83,794,000
Depreciation and Amortization 74,229,000
Capital Expenditure -22,476,000
Unlevered Free Cash Flow 263,760,000

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