DCF Tool

SNY

Sanofi – Pharmaceutical Preparation Manufacturing
Sanofi engages in the research and development, manufacturing and marketing of pharmaceutical drugs principally in the prescription market, but the firm also develops over-the-counter medication. The corporation covers seven major therapeutic areas: cardiovascular, central nervous system, diabetes, internal medicine, oncology, thrombosis and vaccines (it is the worlds largest producer of the latter through its subsidiary Sanofi Pasteur).
Analysis Results
Intrinsic Value $158.11
Latest Price $48.57
Relative Value 69% 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 4.7%.

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 4.7%, 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)
2023 11.4 11.1
2024 12.0 11.2
2025 12.5 11.4
2026 13.1 11.6
2027 13.7 11.7
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 411 billion. This corresponds to a present value of 342 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 57.0 billion. Adding in the terminal value gives a total present value of 399 billion.

There are presently 2.52 billion outstanding shares, so the intrinsic value per share is 158.11.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 36,497,971,083
Current Cash 14,373,502,983
Current Liabilities 25,704,972,052
Current Debt 4,774,362,819
Non-Cash Working Capital (NCWC) 1,193,858,867
Change in NCWC -580,805,173
EBIT 12,817,088,593
Tax Provision 2,151,734,849
Depreciation and Amortization 3,668,461,209
Capital Expenditure -2,360,901,497
Unlevered Free Cash Flow 11,092,834,579
Current Assets 34,570,319,788
Current Cash 12,613,800,755
Current Liabilities 24,086,342,098
Current Debt 3,904,487,106
Non-Cash Working Capital (NCWC) 1,774,664,040
Change in NCWC -1,468,613,746
EBIT 10,390,098,075
Tax Provision 1,762,222,164
Depreciation and Amortization 3,790,248,056
Capital Expenditure -2,310,795,816
Unlevered Free Cash Flow 8,335,379,238
Current Assets 41,420,307,416
Current Cash 18,207,336,271
Current Liabilities 23,655,403,885
Current Debt 3,685,710,528
Non-Cash Working Capital (NCWC) 3,243,277,787
Change in NCWC -333,982,403
EBIT 10,141,541,607
Tax Provision 2,228,140,442
Depreciation and Amortization 4,527,561,716
Capital Expenditure -2,598,063,373
Unlevered Free Cash Flow 10,438,842,837
Current Assets 32,064,220,338
Current Cash 11,042,213,239
Current Liabilities 22,840,895,973
Current Debt 5,396,149,066
Non-Cash Working Capital (NCWC) 3,577,260,190
Change in NCWC 477,505,702
EBIT 8,383,923,398
Tax Provision 155,776,681
Depreciation and Amortization 8,351,423,227
Capital Expenditure -2,035,183,116
Unlevered Free Cash Flow 14,798,934,940
Current Assets 28,093,239,518
Current Cash 8,142,570,419
Current Liabilities 19,860,373,891
Current Debt 3,009,459,280
Non-Cash Working Capital (NCWC) 3,099,754,488
Change in NCWC 976,515,992
EBIT 7,719,668,811
Tax Provision 549,772,090
Depreciation and Amortization 4,890,799,947
Capital Expenditure -2,259,666,159
Unlevered Free Cash Flow 10,570,148,791
Current Assets 31,468,830,621
Current Cash 12,409,839,397
Current Liabilities 18,458,322,514
Current Debt 1,522,569,787
Non-Cash Working Capital (NCWC) 2,123,238,495
Change in NCWC 313,986,227
EBIT 8,723,429,253
Tax Provision 2,056,364,842
Depreciation and Amortization 4,401,719,401
Capital Expenditure -2,335,801,179
Unlevered Free Cash Flow 8,437,067,253
Current Assets 28,186,523,811
Current Cash 10,882,974,532
Current Liabilities 17,357,414,933
Current Debt 1,863,117,922
Non-Cash Working Capital (NCWC) 1,809,252,268
Change in NCWC -786,168,271
EBIT 8,093,578,595
Tax Provision 1,400,507,009
Depreciation and Amortization 3,486,480,874
Capital Expenditure -2,200,042,308
Unlevered Free Cash Flow 6,747,309,796
Current Assets 27,207,167,040
Current Cash 9,998,590,230
Current Liabilities 18,363,309,750
Current Debt 3,750,153,480
Non-Cash Working Capital (NCWC) 2,595,420,540
Change in NCWC -2,980,028,110
EBIT 7,761,158,730
Tax Provision 773,823,870
Depreciation and Amortization 4,666,954,680
Capital Expenditure -3,025,443,960
Unlevered Free Cash Flow 5,368,693,525
Current Assets 28,500,116,850
Current Cash 8,941,642,500
Current Liabilities 15,854,079,600
Current Debt 1,871,053,900
Non-Cash Working Capital (NCWC) 5,575,448,650
Change in NCWC -2,426,340,250
EBIT 8,248,209,000
Tax Provision 1,424,580,050
Depreciation and Amortization 4,594,909,350
Capital Expenditure -1,894,168,350
Unlevered Free Cash Flow 6,822,142,718
Current Assets 32,904,346,720
Current Cash 11,443,314,960
Current Liabilities 19,205,669,420
Current Debt 5,746,426,560
Non-Cash Working Capital (NCWC) 8,001,788,900
Change in NCWC -350,998,450
EBIT 8,963,654,840
Tax Provision 1,049,933,780
Depreciation and Amortization 7,663,278,140
Capital Expenditure -1,923,731,880
Unlevered Free Cash Flow 12,877,586,728

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