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VIVO

Meridian Bioscience Inc. – Surgical and Medical Instrument Manufacturing
Meridian Bioscience Inc. is a fully integrated life science company that develops, manufactures, markets and distributes a broad range of innovative diagnostic products.The company is dedicated to developing and delivering better solutions that give answers with speed, accuracy and simplicity that are redefining the possibilities of life from discovery to diagnosis. Through discovery and development, Meridian provides critical life science raw materials used in immunological and molecular tests for human, animal, plant, and environmental applications. Through diagnosis, Meridian provides diagnostic solutions in areas including gastrointestinal and upper respiratory infections and blood lead level testing. The company builds relationships and provide solutions to hospitals, reference laboratories, research centers, veterinary testing centers, physician offices, diagnostics manufacturers, and biotech companies in more than 70 countries around the world.
Analysis Results
Intrinsic Value $47.34
Latest Price $25.77
Relative Value 46% undervalued
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Cash Flow (Millions)
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 9.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.9%, 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 (million) Present value (million)
2022 67.9 64.0
2023 74.7 66.3
2024 82.0 68.7
2025 90.2 71.1
2026 99.1 73.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2450 million. This corresponds to a present value of 1720 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 344 million. Adding in the terminal value gives a total present value of 2060 million.

There are presently 43.6 million outstanding shares, so the intrinsic value per share is 47.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 385,614,000
Current Cash 99,542,000
Current Liabilities 94,314,000
Current Debt 0
Non-Cash Working Capital (NCWC) 191,758,000
Change in NCWC 135,606,000
EBIT 201,832,000
Tax Provision 38,088,000
Depreciation and Amortization 30,572,000
Capital Expenditure -36,624,000
Unlevered Free Cash Flow 288,891,294
Current Assets 162,190,000
Current Cash 53,514,000
Current Liabilities 52,524,000
Current Debt 0
Non-Cash Working Capital (NCWC) 56,152,000
Change in NCWC -5,298,000
EBIT 61,688,000
Tax Provision 13,107,000
Depreciation and Amortization 13,567,000
Capital Expenditure -3,299,000
Unlevered Free Cash Flow 53,021,573
Current Assets 144,761,000
Current Cash 62,397,000
Current Liabilities 20,914,000
Current Debt 0
Non-Cash Working Capital (NCWC) 61,450,000
Change in NCWC 1,083,000
EBIT 38,929,000
Tax Provision 7,175,000
Depreciation and Amortization 9,964,000
Capital Expenditure -3,797,000
Unlevered Free Cash Flow 37,327,855
Current Assets 139,053,000
Current Cash 59,763,000
Current Liabilities 24,173,000
Current Debt 5,250,000
Non-Cash Working Capital (NCWC) 60,367,000
Change in NCWC 1,951,000
EBIT 44,635,000
Tax Provision 6,531,000
Depreciation and Amortization 7,924,000
Capital Expenditure -4,201,000
Unlevered Free Cash Flow 40,713,503
Current Assets 133,875,000
Current Cash 57,072,000
Current Liabilities 22,887,000
Current Debt 4,500,000
Non-Cash Working Capital (NCWC) 58,416,000
Change in NCWC -2,328,000
EBIT 44,772,000
Tax Provision 14,872,000
Depreciation and Amortization 8,118,000
Capital Expenditure -4,467,000
Unlevered Free Cash Flow 27,817,002
Current Assets 126,791,000
Current Cash 47,226,000
Current Liabilities 22,571,000
Current Debt 3,750,000
Non-Cash Working Capital (NCWC) 60,744,000
Change in NCWC 3,115,000
EBIT 53,536,000
Tax Provision 18,415,000
Depreciation and Amortization 6,627,000
Capital Expenditure -4,004,000
Unlevered Free Cash Flow 39,807,420
Current Assets 122,853,000
Current Cash 49,973,000
Current Liabilities 15,251,000
Current Debt 0
Non-Cash Working Capital (NCWC) 57,629,000
Change in NCWC 1,663,000
EBIT 56,060,000
Tax Provision 19,523,000
Depreciation and Amortization 5,218,000
Capital Expenditure -4,764,000
Unlevered Free Cash Flow 38,300,506
Current Assets 112,748,000
Current Cash 43,047,000
Current Liabilities 13,735,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,966,000
Change in NCWC 7,863,000
EBIT 52,392,000
Tax Provision 17,365,000
Depreciation and Amortization 5,562,000
Capital Expenditure -7,002,000
Unlevered Free Cash Flow 41,355,356
Current Assets 114,088,000
Current Cash 44,282,000
Current Liabilities 21,703,000
Current Debt 0
Non-Cash Working Capital (NCWC) 48,103,000
Change in NCWC 1,568,000
EBIT 57,314,000
Tax Provision 19,330,000
Depreciation and Amortization 5,623,000
Capital Expenditure -3,277,000
Unlevered Free Cash Flow 41,914,175
Current Assets 96,590,000
Current Cash 31,593,000
Current Liabilities 18,462,000
Current Debt 0
Non-Cash Working Capital (NCWC) 46,535,000
Change in NCWC -4,929,000
EBIT 50,309,000
Tax Provision 16,345,000
Depreciation and Amortization 5,655,000
Capital Expenditure -4,835,000
Unlevered Free Cash Flow 29,660,040

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