DCF Tool

SYNH

Syneos Health Inc – Research and Development in Biotechnology
Syneos Health is the only fully integrated biopharmaceutical solutions organization. Our company, including a Contract Research Organization (CRO) and Contract Commercial Organization (CCO), is purpose-built to accelerate customer performance to address modern market realities. Created through the merger of two industry leading companies – INC Research and inVentiv Health – we bring together approximately 24,000 clinical and commercial minds with the ability to support customers in more than 110 countries. Together we share insights, use the latest technologies and apply advanced business practices to speed our customers’ delivery of important therapies to patients. To learn more about how we are shortening the distance from lab to life® visit syneoshealth.com.
Analysis Results
Intrinsic Value $276.27
Latest Price $34.57
Relative Value 87% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
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 20.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.0%, 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 0.715 0.672
2023 0.858 0.759
2024 1.03 0.856
2025 1.24 0.966
2026 1.48 1.09
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 34.8 billion. This corresponds to a present value of 24.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.34 billion. Adding in the terminal value gives a total present value of 28.4 billion.

There are presently 103.0 million outstanding shares, so the intrinsic value per share is 276.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,766,456,000
Current Cash 106,175,000
Current Liabilities 1,654,116,000
Current Debt 20,627,000
Non-Cash Working Capital (NCWC) 26,792,000
Change in NCWC 120,529,000
EBIT 412,096,000
Tax Provision 80,329,000
Depreciation and Amortization 235,625,000
Capital Expenditure -56,841,000
Unlevered Free Cash Flow 606,372,638
Current Assets 1,738,012,000
Current Cash 271,873,000
Current Liabilities 1,577,331,000
Current Debt 17,455,000
Non-Cash Working Capital (NCWC) -93,737,000
Change in NCWC -52,153,000
EBIT 352,799,000
Tax Provision 10,871,000
Depreciation and Amortization 222,352,000
Capital Expenditure -50,010,000
Unlevered Free Cash Flow 454,156,046
Current Assets 1,562,164,000
Current Cash 163,189,000
Current Liabilities 1,516,461,000
Current Debt 75,902,000
Non-Cash Working Capital (NCWC) -41,584,000
Change in NCWC 61,678,000
EBIT 341,164,000
Tax Provision -29,549,000
Depreciation and Amortization 242,465,000
Capital Expenditure -63,973,000
Unlevered Free Cash Flow 581,334,000
Current Assets 1,491,962,000
Current Cash 155,932,000
Current Liabilities 1,503,198,000
Current Debt 63,906,000
Non-Cash Working Capital (NCWC) -103,262,000
Change in NCWC -86,031,000
EBIT 275,816,000
Tax Provision 32,974,000
Depreciation and Amortization 273,685,000
Capital Expenditure -54,595,000
Unlevered Free Cash Flow 250,036,815
Current Assets 1,422,179,000
Current Cash 321,262,000
Current Liabilities 1,159,562,000
Current Debt 41,414,000
Non-Cash Working Capital (NCWC) -17,231,000
Change in NCWC 17,463,000
EBIT 158,264,000
Tax Provision 26,592,000
Depreciation and Amortization 179,936,000
Capital Expenditure -43,896,000
Unlevered Free Cash Flow 311,767,000
Current Assets 522,629,000
Current Cash 102,471,000
Current Liabilities 466,727,000
Current Debt 11,875,000
Non-Cash Working Capital (NCWC) -34,694,000
Change in NCWC 73,059,000
EBIT 172,114,000
Tax Provision 21,488,000
Depreciation and Amortization 59,204,000
Capital Expenditure -31,353,000
Unlevered Free Cash Flow 245,448,390

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.