DCF Tool

PRGO

Perrigo Company plc – Pharmaceutical Preparation Manufacturing
Perrigo Company plc is a leading provider of Quality, Affordable Self-Care Products and over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. Led by its consumer self-care strategy, Perrigo is the largest store brand OTC player in the U.S. in the categories in which it competes through more than 9,000 SKUs under customer 'own brand' labels. Additionally, Perrigo is a Top 5 OTC company by revenue in Europe, where it markets more than 200 branded OTC products throughout 28 countries. The Company also commercializes and manufactures generic prescription products in the U.S.
Analysis Results
Intrinsic Value $138.10
Latest Price $32.12
Relative Value 77% 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 -0.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -0.7%, 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 0.665 0.642
2023 0.661 0.615
2024 0.656 0.589
2025 0.651 0.564
2026 0.647 0.54
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 19.4 billion. This corresponds to a present value of 15.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.95 billion. Adding in the terminal value gives a total present value of 18.6 billion.

There are presently 135.0 million outstanding shares, so the intrinsic value per share is 138.1.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,859,900,000
Current Cash 1,865,300,000
Current Liabilities 1,587,900,000
Current Debt 603,800,000
Non-Cash Working Capital (NCWC) 1,010,500,000
Change in NCWC -134,800,000
EBIT 600,400,000
Tax Provision 389,600,000
Depreciation and Amortization 312,200,000
Capital Expenditure -152,100,000
Unlevered Free Cash Flow 236,100,000
Current Assets 3,133,500,000
Current Cash 644,000,000
Current Liabilities 1,382,000,000
Current Debt 37,800,000
Non-Cash Working Capital (NCWC) 1,145,300,000
Change in NCWC 81,700,000
EBIT 465,700,000
Tax Provision 13,200,000
Depreciation and Amortization 384,800,000
Capital Expenditure -170,400,000
Unlevered Free Cash Flow 761,800,000
Current Assets 2,756,900,000
Current Cash 360,900,000
Current Liabilities 1,335,800,000
Current Debt 3,400,000
Non-Cash Working Capital (NCWC) 1,063,600,000
Change in NCWC 69,100,000
EBIT 415,600,000
Tax Provision 24,900,000
Depreciation and Amortization 396,500,000
Capital Expenditure -137,700,000
Unlevered Free Cash Flow 682,982,807
Current Assets 2,902,200,000
Current Cash 560,500,000
Current Liabilities 1,537,400,000
Current Debt 190,200,000
Non-Cash Working Capital (NCWC) 994,500,000
Change in NCWC 219,200,000
EBIT 481,900,000
Tax Provision 159,600,000
Depreciation and Amortization 423,600,000
Capital Expenditure -102,600,000
Unlevered Free Cash Flow 757,436,407
Current Assets 2,819,600,000
Current Cash 678,700,000
Current Liabilities 1,436,000,000
Current Debt 70,400,000
Non-Cash Working Capital (NCWC) 775,300,000
Change in NCWC -144,200,000
EBIT 706,700,000
Tax Provision 160,500,000
Depreciation and Amortization 444,800,000
Capital Expenditure -88,600,000
Unlevered Free Cash Flow 513,754,087
Current Assets 2,805,300,000
Current Cash 622,300,000
Current Liabilities 1,836,300,000
Current Debt 572,800,000
Non-Cash Working Capital (NCWC) 919,500,000
Change in NCWC 164,000,000
EBIT 662,300,000
Tax Provision -835,500,000
Depreciation and Amortization 457,000,000
Capital Expenditure -106,200,000
Unlevered Free Cash Flow 1,177,100,000
Current Assets 3,182,900,000
Current Cash 798,300,000
Current Liabilities 1,693,700,000
Current Debt 64,600,000
Non-Cash Working Capital (NCWC) 755,500,000
Change in NCWC -59,000,000
EBIT 752,800,000
Tax Provision 120,000,000
Depreciation and Amortization 548,800,000
Capital Expenditure -137,000,000
Unlevered Free Cash Flow 741,341,935
Current Assets 2,550,900,000
Current Cash 805,400,000
Current Liabilities 1,074,700,000
Current Debt 143,700,000
Non-Cash Working Capital (NCWC) 814,500,000
Change in NCWC 60,800,000
EBIT 620,000,000
Tax Provision 67,300,000
Depreciation and Amortization 358,900,000
Capital Expenditure -171,600,000
Unlevered Free Cash Flow 715,033,235
Current Assets 2,236,900,000
Current Cash 779,900,000
Current Liabilities 749,500,000
Current Debt 46,200,000
Non-Cash Working Capital (NCWC) 753,700,000
Change in NCWC 172,909,000
EBIT 691,000,000
Tax Provision 165,700,000
Depreciation and Amortization 160,200,000
Capital Expenditure -104,100,000
Unlevered Free Cash Flow 731,595,802
Current Assets 1,795,921,000
Current Cash 602,489,000
Current Liabilities 652,731,000
Current Debt 40,090,000
Non-Cash Working Capital (NCWC) 580,791,000
Change in NCWC 101,867,000
EBIT 577,981,000
Tax Provision 119,015,000
Depreciation and Amortization 135,323,000
Capital Expenditure -120,942,000
Unlevered Free Cash Flow 559,873,752

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