DCF Tool

JNJ

Johnson & Johnson – Pharmaceutical Preparation Manufacturing
Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods.
Analysis Results
Intrinsic Value $310.93
Latest Price $160.50
Relative Value 48% 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 6.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.2%, 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)
2023 25.0 23.7
2024 26.5 23.8
2025 28.1 24.0
2026 29.9 24.2
2027 31.7 24.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 945 billion. This corresponds to a present value of 688 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 120 billion. Adding in the terminal value gives a total present value of 808 billion.

There are presently 2.6 billion outstanding shares, so the intrinsic value per share is 310.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 55,294,000,000
Current Cash 23,519,000,000
Current Liabilities 55,802,000,000
Current Debt 12,771,000,000
Non-Cash Working Capital (NCWC) -11,256,000,000
Change in NCWC 833,000,000
EBIT 24,486,000,000
Tax Provision 3,784,000,000
Depreciation and Amortization 6,970,000,000
Capital Expenditure -4,009,000,000
Unlevered Free Cash Flow 24,015,096,708
Current Assets 60,979,000,000
Current Cash 31,608,000,000
Current Liabilities 45,226,000,000
Current Debt 3,766,000,000
Non-Cash Working Capital (NCWC) -12,089,000,000
Change in NCWC 1,721,000,000
EBIT 24,547,000,000
Tax Provision 1,898,000,000
Depreciation and Amortization 7,390,000,000
Capital Expenditure -3,652,000,000
Unlevered Free Cash Flow 27,960,416,666
Current Assets 51,237,000,000
Current Cash 25,185,000,000
Current Liabilities 42,493,000,000
Current Debt 2,631,000,000
Non-Cash Working Capital (NCWC) -13,810,000,000
Change in NCWC -5,035,000,000
EBIT 19,914,000,000
Tax Provision 1,783,000,000
Depreciation and Amortization 7,231,000,000
Capital Expenditure -3,347,000,000
Unlevered Free Cash Flow 16,610,689,761
Current Assets 45,274,000,000
Current Cash 19,287,000,000
Current Liabilities 35,964,000,000
Current Debt 1,202,000,000
Non-Cash Working Capital (NCWC) -8,775,000,000
Change in NCWC -6,687,000,000
EBIT 20,970,000,000
Tax Provision 2,209,000,000
Depreciation and Amortization 7,009,000,000
Capital Expenditure -3,498,000,000
Unlevered Free Cash Flow 15,120,712,257
Current Assets 46,033,000,000
Current Cash 19,687,000,000
Current Liabilities 31,230,000,000
Current Debt 2,796,000,000
Non-Cash Working Capital (NCWC) -2,088,000,000
Change in NCWC -249,000,000
EBIT 21,175,000,000
Tax Provision 2,702,000,000
Depreciation and Amortization 6,929,000,000
Capital Expenditure -3,670,000,000
Unlevered Free Cash Flow 21,006,220,623
Current Assets 43,088,000,000
Current Cash 18,296,000,000
Current Liabilities 30,537,000,000
Current Debt 3,906,000,000
Non-Cash Working Capital (NCWC) -1,839,000,000
Change in NCWC -3,361,000,000
EBIT 19,122,000,000
Tax Provision 16,373,000,000
Depreciation and Amortization 5,642,000,000
Capital Expenditure -3,279,000,000
Unlevered Free Cash Flow 408,586,318
Current Assets 65,032,000,000
Current Cash 41,907,000,000
Current Liabilities 26,287,000,000
Current Debt 4,684,000,000
Non-Cash Working Capital (NCWC) 1,522,000,000
Change in NCWC 431,000,000
EBIT 21,165,000,000
Tax Provision 3,263,000,000
Depreciation and Amortization 3,754,000,000
Capital Expenditure -3,226,000,000
Unlevered Free Cash Flow 18,636,579,154
Current Assets 60,210,000,000
Current Cash 38,376,000,000
Current Liabilities 27,747,000,000
Current Debt 7,004,000,000
Non-Cash Working Capital (NCWC) 1,091,000,000
Change in NCWC -3,684,000,000
EBIT 18,289,000,000
Tax Provision 3,787,000,000
Depreciation and Amortization 3,746,000,000
Capital Expenditure -3,463,000,000
Unlevered Free Cash Flow 11,279,933,579
Current Assets 59,311,000,000
Current Cash 33,089,000,000
Current Liabilities 25,085,000,000
Current Debt 3,638,000,000
Non-Cash Working Capital (NCWC) 4,775,000,000
Change in NCWC -1,603,000,000
EBIT 21,137,000,000
Tax Provision 4,240,000,000
Depreciation and Amortization 3,895,000,000
Capital Expenditure -3,714,000,000
Unlevered Free Cash Flow 15,356,643,729
Current Assets 56,407,000,000
Current Cash 29,206,000,000
Current Liabilities 25,675,000,000
Current Debt 4,852,000,000
Non-Cash Working Capital (NCWC) 6,378,000,000
Change in NCWC 937,000,000
EBIT 18,957,000,000
Tax Provision 1,640,000,000
Depreciation and Amortization 4,104,000,000
Capital Expenditure -3,595,000,000
Unlevered Free Cash Flow 18,393,467,325
Current Assets 46,116,000,000
Current Cash 21,089,000,000
Current Liabilities 24,262,000,000
Current Debt 4,676,000,000
Non-Cash Working Capital (NCWC) 5,441,000,000
Change in NCWC -461,000,000
EBIT 17,032,000,000
Tax Provision 3,261,000,000
Depreciation and Amortization 3,666,000,000
Capital Expenditure -2,934,000,000
Unlevered Free Cash Flow 13,270,959,927

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