DCF Tool

PHG

Koninklijke Philips N.V. – Electromedical and Electrotherapeutic Apparatus Manufacturing
Analysis Results
Intrinsic Value $17.95
Latest Price $20.59
Relative Value 15% overvalued
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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 -10.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -10.8%, 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)
2022 0.795 0.775
2023 0.709 0.674
2024 0.632 0.586
2025 0.564 0.51
2026 0.503 0.444
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 15.1 billion. This corresponds to a present value of 13.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.99 billion. Adding in the terminal value gives a total present value of 16.0 billion.

There are presently 889.0 million outstanding shares, so the intrinsic value per share is 17.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 11,703,281,601
Current Cash 2,604,876,536
Current Liabilities 8,426,543,725
Current Debt 572,326,325
Non-Cash Working Capital (NCWC) 1,244,187,664
Change in NCWC -593,137,190
EBIT 620,962,752
Tax Provision -116,501,208
Depreciation and Amortization 1,496,418,436
Capital Expenditure -863,013,807
Unlevered Free Cash Flow 661,230,191
Current Assets 13,797,756,619
Current Cash 3,964,688,951
Current Liabilities 9,506,159,032
Current Debt 1,510,416,218
Non-Cash Working Capital (NCWC) 1,837,324,854
Change in NCWC 85,677,712
EBIT 1,884,026,088
Tax Provision 350,259,253
Depreciation and Amortization 1,868,049,350
Capital Expenditure -1,766,044,024
Unlevered Free Cash Flow 1,711,341,720
Current Assets 10,598,417,802
Current Cash 1,596,991,156
Current Liabilities 7,819,092,841
Current Debt 569,313,338
Non-Cash Working Capital (NCWC) 1,751,647,142
Change in NCWC 722,967,555
EBIT 1,844,664,872
Tax Provision 377,674,399
Depreciation and Amortization 1,571,215,158
Capital Expenditure -1,676,560,540
Unlevered Free Cash Flow 2,055,978,508
Current Assets 10,940,578,895
Current Cash 2,427,683,825
Current Liabilities 9,077,525,865
Current Debt 1,593,310,382
Non-Cash Working Capital (NCWC) 1,028,679,586
Change in NCWC -1,344,140,936
EBIT 1,961,349,079
Tax Provision 220,594,622
Depreciation and Amortization 1,244,702,300
Capital Expenditure -1,392,146,374
Unlevered Free Cash Flow 217,907,534
Current Assets 12,081,441,992
Current Cash 2,315,500,249
Current Liabilities 8,195,605,060
Current Debt 802,483,840
Non-Cash Working Capital (NCWC) 2,372,820,523
Change in NCWC -640,487,545
EBIT 1,716,025,713
Tax Provision 417,960,333
Depreciation and Amortization 1,224,026,691
Capital Expenditure -1,446,142,755
Unlevered Free Cash Flow 416,615,559
Current Assets 14,865,864,377
Current Cash 2,465,145,822
Current Liabilities 11,061,470,524
Current Debt 1,674,060,038
Non-Cash Working Capital (NCWC) 3,013,308,068
Change in NCWC 258,538,748
EBIT 1,976,130,177
Tax Provision 345,373,900
Depreciation and Amortization 1,338,191,841
Capital Expenditure -917,828,500
Unlevered Free Cash Flow 2,194,123,159
Current Assets 13,853,520,990
Current Cash 1,927,465,380
Current Liabilities 10,988,517,240
Current Debt 1,817,230,950
Non-Cash Working Capital (NCWC) 2,754,769,320
Change in NCWC 689,067,420
EBIT 1,020,487,050
Tax Provision 260,851,770
Depreciation and Amortization 1,398,121,830
Capital Expenditure -1,044,498,510
Unlevered Free Cash Flow 1,689,676,404

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