DCF Tool

SYK

Stryker Corp. – Surgical and Medical Instrument Manufacturing
Stryker is one of the world's leading medical technology companies and, together with its customers, is driven to make healthcare better. The company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient and hospital outcomes.
Analysis Results
Intrinsic Value $451.50
Latest Price $278.12
Relative Value 38% 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 10.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.2%, 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 4.01 3.89
2024 4.42 4.17
2025 4.87 4.46
2026 5.37 4.77
2027 5.92 5.1
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 178 billion. This corresponds to a present value of 149 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 22.4 billion. Adding in the terminal value gives a total present value of 171 billion.

There are presently 379.0 million outstanding shares, so the intrinsic value per share is 451.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 10,275,000,000
Current Cash 1,928,000,000
Current Liabilities 6,303,000,000
Current Debt 1,191,000,000
Non-Cash Working Capital (NCWC) 3,235,000,000
Change in NCWC 779,000,000
EBIT 3,042,000,000
Tax Provision 325,000,000
Depreciation and Amortization 998,000,000
Capital Expenditure -588,000,000
Unlevered Free Cash Flow 3,862,513,231
Current Assets 10,017,000,000
Current Cash 3,019,000,000
Current Liabilities 4,549,000,000
Current Debt 7,000,000
Non-Cash Working Capital (NCWC) 2,456,000,000
Change in NCWC 53,000,000
EBIT 2,687,000,000
Tax Provision 287,000,000
Depreciation and Amortization 990,000,000
Capital Expenditure -525,000,000
Unlevered Free Cash Flow 2,866,916,264
Current Assets 9,707,000,000
Current Cash 3,024,000,000
Current Liabilities 5,041,000,000
Current Debt 761,000,000
Non-Cash Working Capital (NCWC) 2,403,000,000
Change in NCWC -991,000,000
EBIT 2,240,000,000
Tax Provision 355,000,000
Depreciation and Amortization 812,000,000
Capital Expenditure -487,000,000
Unlevered Free Cash Flow 1,167,039,918
Current Assets 11,360,000,000
Current Cash 4,425,000,000
Current Liabilities 4,400,000,000
Current Debt 859,000,000
Non-Cash Working Capital (NCWC) 3,394,000,000
Change in NCWC 794,000,000
EBIT 2,713,000,000
Tax Provision 479,000,000
Depreciation and Amortization 778,000,000
Capital Expenditure -649,000,000
Unlevered Free Cash Flow 3,128,768,540
Current Assets 9,733,000,000
Current Cash 3,699,000,000
Current Liabilities 4,807,000,000
Current Debt 1,373,000,000
Non-Cash Working Capital (NCWC) 2,600,000,000
Change in NCWC 253,000,000
EBIT 2,537,000,000
Tax Provision -1,197,000,000
Depreciation and Amortization 723,000,000
Capital Expenditure -572,000,000
Unlevered Free Cash Flow 2,941,000,000
Current Assets 7,993,000,000
Current Cash 2,793,000,000
Current Liabilities 3,485,000,000
Current Debt 632,000,000
Non-Cash Working Capital (NCWC) 2,347,000,000
Change in NCWC 790,000,000
EBIT 2,290,000,000
Tax Provision 1,043,000,000
Depreciation and Amortization 642,000,000
Capital Expenditure -598,000,000
Unlevered Free Cash Flow 1,966,234,609
Current Assets 7,861,000,000
Current Cash 3,384,000,000
Current Liabilities 3,148,000,000
Current Debt 228,000,000
Non-Cash Working Capital (NCWC) 1,557,000,000
Change in NCWC 426,000,000
EBIT 2,166,000,000
Tax Provision 274,000,000
Depreciation and Amortization 546,000,000
Capital Expenditure -490,000,000
Unlevered Free Cash Flow 2,339,054,659
Current Assets 7,944,000,000
Current Cash 4,079,000,000
Current Liabilities 3,503,000,000
Current Debt 769,000,000
Non-Cash Working Capital (NCWC) 1,131,000,000
Change in NCWC 195,000,000
EBIT 1,861,000,000
Tax Provision 296,000,000
Depreciation and Amortization 397,000,000
Capital Expenditure -270,000,000
Unlevered Free Cash Flow 1,865,503,746
Current Assets 9,673,000,000
Current Cash 5,000,000,000
Current Liabilities 4,464,000,000
Current Debt 727,000,000
Non-Cash Working Capital (NCWC) 936,000,000
Change in NCWC -787,000,000
EBIT 1,246,000,000
Tax Provision 645,000,000
Depreciation and Amortization 378,000,000
Capital Expenditure -233,000,000
Unlevered Free Cash Flow -88,818,965
Current Assets 8,335,000,000
Current Cash 3,980,000,000
Current Liabilities 2,657,000,000
Current Debt 25,000,000
Non-Cash Working Capital (NCWC) 1,723,000,000
Change in NCWC -280,000,000
EBIT 1,304,000,000
Tax Provision 206,000,000
Depreciation and Amortization 307,000,000
Capital Expenditure -195,000,000
Unlevered Free Cash Flow 914,363,036
Current Assets 8,148,000,000
Current Cash 4,285,000,000
Current Liabilities 1,876,000,000
Current Debt 16,000,000
Non-Cash Working Capital (NCWC) 2,003,000,000
Change in NCWC 21,000,000
EBIT 1,816,000,000
Tax Provision 407,000,000
Depreciation and Amortization 277,000,000
Capital Expenditure -210,000,000
Unlevered Free Cash Flow 1,470,503,225

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