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Teva- Pharmaceutical Industries Ltd. – Pharmaceutical Preparation Manufacturing
Teva Pharmaceutical Industries Ltd. is an Israeli multinational pharmaceutical company with headquarters in Tel Aviv, Israel. It specializes primarily in generic drugs, but other business interests include active pharmaceutical ingredients and, to a lesser extent, proprietary pharmaceuticals.
Analysis Results
Intrinsic Value $204.94
Latest Price $8.07
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 8.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.2%, 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)
2022 5.96 5.75
2023 6.45 5.99
2024 6.98 6.25
2025 7.55 6.51
2026 8.17 6.79
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 245 billion. This corresponds to a present value of 196 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 31.3 billion. Adding in the terminal value gives a total present value of 228 billion.

There are presently 1.11 billion outstanding shares, so the intrinsic value per share is 204.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 25,142,000,000
Current Cash 4,330,000,000
Current Liabilities 22,054,000,000
Current Debt 2,852,000,000
Non-Cash Working Capital (NCWC) 1,610,000,000
Change in NCWC 760,000,000
EBIT 6,216,000,000
Tax Provision 422,000,000
Depreciation and Amortization 2,660,000,000
Capital Expenditure -1,124,000,000
Unlevered Free Cash Flow 6,542,666,666
Current Assets 13,005,000,000
Current Cash 2,177,000,000
Current Liabilities 13,166,000,000
Current Debt 3,188,000,000
Non-Cash Working Capital (NCWC) 850,000,000
Change in NCWC 690,000,000
EBIT 3,196,000,000
Tax Provision -168,000,000
Depreciation and Amortization 1,557,000,000
Capital Expenditure -578,000,000
Unlevered Free Cash Flow 4,865,000,000
Current Assets 13,463,000,000
Current Cash 1,975,000,000
Current Liabilities 13,673,000,000
Current Debt 2,345,000,000
Non-Cash Working Capital (NCWC) 160,000,000
Change in NCWC 256,000,000
EBIT 2,707,000,000
Tax Provision -278,000,000
Depreciation and Amortization 1,722,000,000
Capital Expenditure -525,000,000
Unlevered Free Cash Flow 4,160,000,000
Current Assets 13,794,000,000
Current Cash 1,784,000,000
Current Liabilities 14,322,000,000
Current Debt 2,216,000,000
Non-Cash Working Capital (NCWC) -96,000,000
Change in NCWC -226,000,000
EBIT 2,798,000,000
Tax Provision -195,000,000
Depreciation and Amortization 1,842,000,000
Capital Expenditure -651,000,000
Unlevered Free Cash Flow 3,763,000,000
Current Assets 15,382,000,000
Current Cash 977,000,000
Current Liabilities 17,921,000,000
Current Debt 3,646,000,000
Non-Cash Working Capital (NCWC) 130,000,000
Change in NCWC 79,000,000
EBIT 3,988,000,000
Tax Provision -1,933,000,000
Depreciation and Amortization 2,112,000,000
Capital Expenditure -874,000,000
Unlevered Free Cash Flow 5,305,000,000
Current Assets 16,961,000,000
Current Cash 1,667,000,000
Current Liabilities 18,519,000,000
Current Debt 3,276,000,000
Non-Cash Working Capital (NCWC) 51,000,000
Change in NCWC 30,000,000
EBIT 4,660,000,000
Tax Provision 521,000,000
Depreciation and Amortization 1,524,000,000
Capital Expenditure -901,000,000
Unlevered Free Cash Flow 2,394,899,038
Current Assets 18,398,000,000
Current Cash 6,957,000,000
Current Liabilities 13,005,000,000
Current Debt 1,585,000,000
Non-Cash Working Capital (NCWC) 21,000,000
Change in NCWC -1,548,000,000
EBIT 4,993,000,000
Tax Provision 634,000,000
Depreciation and Amortization 1,308,000,000
Capital Expenditure -772,000,000
Unlevered Free Cash Flow 2,562,101,748
Current Assets 14,396,000,000
Current Cash 2,299,000,000
Current Liabilities 12,289,000,000
Current Debt 1,761,000,000
Non-Cash Working Capital (NCWC) 1,569,000,000
Change in NCWC -924,000,000
EBIT 4,485,000,000
Tax Provision 591,000,000
Depreciation and Amortization 1,508,000,000
Capital Expenditure -929,000,000
Unlevered Free Cash Flow 3,410,400,495
Current Assets 13,720,000,000
Current Cash 1,066,000,000
Current Liabilities 11,965,000,000
Current Debt 1,804,000,000
Non-Cash Working Capital (NCWC) 2,493,000,000
Change in NCWC -1,101,000,000
EBIT 3,921,000,000
Tax Provision -43,000,000
Depreciation and Amortization 1,642,000,000
Capital Expenditure -1,031,000,000
Unlevered Free Cash Flow 3,431,000,000
Current Assets 16,355,000,000
Current Cash 2,879,000,000
Current Liabilities 12,888,000,000
Current Debt 3,006,000,000
Non-Cash Working Capital (NCWC) 3,594,000,000
Change in NCWC -196,000,000
EBIT 4,133,000,000
Tax Provision -137,000,000
Depreciation and Amortization 1,708,000,000
Capital Expenditure -1,104,000,000
Unlevered Free Cash Flow 4,541,000,000

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