DCF Tool

NVS

Novartis AG – Pharmaceutical Preparation Manufacturing
Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and Cambridge, Massachusetts, United States. It is one of the largest pharmaceutical companies in the world.
Analysis Results
Intrinsic Value $229.24
Latest Price $83.67
Relative Value 64% 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 3.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.8%, 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 16.3 15.8
2024 16.9 15.9
2025 17.5 16.0
2026 18.2 16.1
2027 18.9 16.2
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 567 billion. This corresponds to a present value of 471 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 80.0 billion. Adding in the terminal value gives a total present value of 551 billion.

There are presently 2.4 billion outstanding shares, so the intrinsic value per share is 229.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 36,910,000,000
Current Cash 18,973,000,000
Current Liabilities 28,656,000,000
Current Debt 6,127,000,000
Non-Cash Working Capital (NCWC) -4,592,000,000
Change in NCWC 1,725,000,000
EBIT 12,084,000,000
Tax Provision 1,416,000,000
Depreciation and Amortization 7,181,000,000
Capital Expenditure -2,672,000,000
Unlevered Free Cash Flow 16,273,925,934
Current Assets 45,718,000,000
Current Cash 28,329,000,000
Current Liabilities 30,208,000,000
Current Debt 6,502,000,000
Non-Cash Working Capital (NCWC) -6,317,000,000
Change in NCWC -1,245,000,000
EBIT 27,923,000,000
Tax Provision 2,119,000,000
Depreciation and Amortization 6,113,000,000
Capital Expenditure -3,032,000,000
Unlevered Free Cash Flow 27,495,203,963
Current Assets 29,673,000,000
Current Cash 11,563,000,000
Current Liabilities 33,059,000,000
Current Debt 9,877,000,000
Non-Cash Working Capital (NCWC) -5,072,000,000
Change in NCWC -1,958,000,000
EBIT 12,273,000,000
Tax Provision 1,807,000,000
Depreciation and Amortization 6,464,000,000
Capital Expenditure -2,585,000,000
Unlevered Free Cash Flow 11,948,878,416
Current Assets 29,504,000,000
Current Cash 11,446,000,000
Current Liabilities 28,264,000,000
Current Debt 7,092,000,000
Non-Cash Working Capital (NCWC) -3,114,000,000
Change in NCWC -2,726,000,000
EBIT 11,140,000,000
Tax Provision 1,793,000,000
Depreciation and Amortization 5,826,000,000
Capital Expenditure -1,379,000,000
Unlevered Free Cash Flow 10,626,769,574
Current Assets 35,563,000,000
Current Cash 15,964,000,000
Current Liabilities 29,607,000,000
Current Debt 9,620,000,000
Non-Cash Working Capital (NCWC) -388,000,000
Change in NCWC -909,000,000
EBIT 15,652,000,000
Tax Provision 1,221,000,000
Depreciation and Amortization 6,892,000,000
Capital Expenditure -3,394,000,000
Unlevered Free Cash Flow 16,859,641,705
Current Assets 28,208,000,000
Current Cash 9,485,000,000
Current Liabilities 23,403,000,000
Current Debt 5,201,000,000
Non-Cash Working Capital (NCWC) 521,000,000
Change in NCWC -213,000,000
EBIT 10,099,000,000
Tax Provision 1,296,000,000
Depreciation and Amortization 6,076,000,000
Capital Expenditure -2,788,000,000
Unlevered Free Cash Flow 11,719,582,398
Current Assets 24,931,000,000
Current Cash 7,777,000,000
Current Liabilities 22,209,000,000
Current Debt 5,789,000,000
Non-Cash Working Capital (NCWC) 734,000,000
Change in NCWC 1,470,000,000
EBIT 9,388,000,000
Tax Provision 1,119,000,000
Depreciation and Amortization 6,043,000,000
Capital Expenditure -3,118,000,000
Unlevered Free Cash Flow 12,439,112,063
Current Assets 22,845,000,000
Current Cash 5,447,000,000
Current Liabilities 23,708,000,000
Current Debt 5,574,000,000
Non-Cash Working Capital (NCWC) -736,000,000
Change in NCWC -4,022,000,000
EBIT 10,041,000,000
Tax Provision 1,106,000,000
Depreciation and Amortization 5,471,000,000
Capital Expenditure -3,505,000,000
Unlevered Free Cash Flow 6,619,700,516
Current Assets 37,561,000,000
Current Cash 13,862,000,000
Current Liabilities 26,973,000,000
Current Debt 6,560,000,000
Non-Cash Working Capital (NCWC) 3,286,000,000
Change in NCWC 1,661,000,000
EBIT 13,889,000,000
Tax Provision 1,545,000,000
Depreciation and Amortization 4,682,000,000
Capital Expenditure -3,404,000,000
Unlevered Free Cash Flow 15,079,425,602
Current Assets 30,542,000,000
Current Cash 9,222,000,000
Current Liabilities 26,368,000,000
Current Debt 6,673,000,000
Non-Cash Working Capital (NCWC) 1,625,000,000
Change in NCWC 8,000,000
EBIT 12,362,000,000
Tax Provision 1,443,000,000
Depreciation and Amortization 4,925,000,000
Capital Expenditure -3,610,000,000
Unlevered Free Cash Flow 12,023,298,462
Current Assets 28,004,000,000
Current Cash 8,119,000,000
Current Liabilities 24,051,000,000
Current Debt 5,783,000,000
Non-Cash Working Capital (NCWC) 1,617,000,000
Change in NCWC -588,000,000
EBIT 12,735,000,000
Tax Provision 1,625,000,000
Depreciation and Amortization 4,920,000,000
Capital Expenditure -3,125,000,000
Unlevered Free Cash Flow 12,101,354,709

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