DCF Tool

PINC

Premier Inc – Dental Laboratories
Premier Inc. is a leading healthcare improvement company, uniting an alliance of more than 4,100 U.S. hospitals and health systems and approximately 200,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare.
Analysis Results
Intrinsic Value $122.34
Latest Price $37.16
Relative Value 70% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
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 8.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.1%, 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 (million) Present value (million)
2022 405 386
2023 438 397
2024 473 409
2025 511 421
2026 552 433
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 16600 million. This corresponds to a present value of 12400 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2050 million. Adding in the terminal value gives a total present value of 14400 million.

There are presently 118.0 million outstanding shares, so the intrinsic value per share is 122.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 782,296,000
Current Cash 129,141,000
Current Liabilities 716,784,000
Current Debt 174,243,000
Non-Cash Working Capital (NCWC) 110,614,000
Change in NCWC 8,070,000
EBIT 277,990,000
Tax Provision -53,943,000
Depreciation and Amortization 121,062,000
Capital Expenditure -88,876,000
Unlevered Free Cash Flow 318,246,000
Current Assets 618,362,000
Current Cash 99,304,000
Current Liabilities 496,074,000
Current Debt 79,560,000
Non-Cash Working Capital (NCWC) 102,544,000
Change in NCWC 59,969,000
EBIT 361,573,000
Tax Provision 92,561,000
Depreciation and Amortization 152,827,000
Capital Expenditure -94,397,000
Unlevered Free Cash Flow 392,745,801
Current Assets 614,044,000
Current Cash 141,055,000
Current Liabilities 458,022,000
Current Debt 27,608,000
Non-Cash Working Capital (NCWC) 42,575,000
Change in NCWC 114,975,000
EBIT 374,172,000
Tax Provision 33,462,000
Depreciation and Amortization 140,164,000
Capital Expenditure -93,385,000
Unlevered Free Cash Flow 501,915,630
Current Assets 428,618,000
Current Cash 152,386,000
Current Liabilities 448,882,000
Current Debt 100,250,000
Non-Cash Working Capital (NCWC) -72,400,000
Change in NCWC 19,117,000
EBIT 363,630,000
Tax Provision 259,234,000
Depreciation and Amortization 126,759,000
Capital Expenditure -92,680,000
Unlevered Free Cash Flow 234,425,594
Current Assets 408,812,000
Current Cash 156,735,000
Current Liabilities 571,587,000
Current Debt 227,993,000
Non-Cash Working Capital (NCWC) -91,517,000
Change in NCWC 32,748,000
EBIT 332,465,000
Tax Provision 81,814,000
Depreciation and Amortization 107,211,000
Capital Expenditure -71,372,000
Unlevered Free Cash Flow 349,855,402
Current Assets 462,890,000
Current Cash 266,576,000
Current Liabilities 326,063,000
Current Debt 5,484,000
Non-Cash Working Capital (NCWC) -124,265,000
Change in NCWC -22,870,000
EBIT 287,595,000
Tax Provision 49,721,000
Depreciation and Amortization 84,156,000
Capital Expenditure -76,990,000
Unlevered Free Cash Flow 221,696,494
Current Assets 553,169,000
Current Cash 387,189,000
Current Liabilities 269,631,000
Current Debt 2,256,000
Non-Cash Working Capital (NCWC) -101,395,000
Change in NCWC -25,659,000
EBIT 287,327,000
Tax Provision 36,342,000
Depreciation and Amortization 54,322,000
Capital Expenditure -70,734,000
Unlevered Free Cash Flow 206,742,543

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.