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    Genzyme DCF PDF

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    Abinash
    This document summarizes the historical and projected financial performance of a company from 2009-2015. It reports key metrics such as EBITDA, operating income, net income, revenues, expenses, free cash flows, and provides assumptions for a discounted cash flow valuation. The company's revenues are projected to grow steadily across all business segments. EBITDA, operating income and net income are also forecasted to increase year over year as revenues grow and expenses remain a consistent percentage of revenues. The discounted cash flow analysis values the company at $18.9 million based on projected free cash flows and a terminal value estimate of $25.6 million using a perpetuity growth rate of 3%.

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    © All Rights Reserved
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    Genzyme DCF PDF

    Uploaded by

    Abinash
    161 views5 pages
    This document summarizes the historical and projected financial performance of a company from 2009-2015. It reports key metrics such as EBITDA, operating income, net income, revenues, expenses, free cash flows, and provides assumptions for a discounted cash flow valuation. The company's revenues are projected to grow steadily across all business segments. EBITDA, operating income and net income are also forecasted to increase year over year as revenues grow and expenses remain a consistent percentage of revenues. The discounted cash flow analysis values the company at $18.9 million based on projected free cash flows and a terminal value estimate of $25.6 million using a perpetuity growth rate of 3%.

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    Genzyme DCF.pdf

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    This document summarizes the historical and projected financial performance of a company from 2009-2015. It reports key metrics such as EBITDA, operating income, net income, revenues, expenses, free cash flows, and provides assumptions for a discounted cash flow valuation. The company's revenues are projected to grow steadily across all business segments. EBITDA, operating income and net income are also forecasted to increase year over year as revenues grow and expenses remain a consistent percentage of revenues. The discounted cash flow analysis values the company at $18.9 million based on projected free cash flows and a terminal value estimate of $25.6 million using a perpetuity growth rate of 3%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    161 views5 pages

    Genzyme DCF PDF

    Uploaded by

    Abinash
    This document summarizes the historical and projected financial performance of a company from 2009-2015. It reports key metrics such as EBITDA, operating income, net income, revenues, expenses, free cash flows, and provides assumptions for a discounted cash flow valuation. The company's revenues are projected to grow steadily across all business segments. EBITDA, operating income and net income are also forecasted to increase year over year as revenues grow and expenses remain a consistent percentage of revenues. The discounted cash flow analysis values the company at $18.9 million based on projected free cash flows and a terminal value estimate of $25.6 million using a perpetuity growth rate of 3%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 5

    Reported Projected

    2009 2010 2011 2012 2013 2014 2015


    EBITDA $836 $1,008 $1,382 $1,671 $2,248 $2,810 $3,173

    Depreciation & Amortization ($266) ($288) ($352) ($403) ($516) ($615) ($694)
    % of Revenues -6.5% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%

    Other Expenses ($66) ($206) ($50) ($58) ($74) $0 $0


    % of Revenues -1.6% 5.0% 1.0% 1.0% 1.0% 0.0% 0.0%

    Operating Income $504 $514 $980 $1,210 $1,658 $2,195 $2,479


    % EBIT Margin 12.4% 12.5% 19.5% 21.0% 22.5% 25.0% 25.0%

    Taxes ($121) ($180) ($343) ($424) ($580) ($768) ($868)


    % Tax rate -22.3% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%

    NOPAT $382 $334 $637 $787 $1,078 $1,427 $1,611


    9.4% 8.1% 12.7% 13.7% 14.6% 16.3% 16.3%
    Depreciation & Amortization $266 $288 $352 $403 $516 $615 $694
    Capital Expenditures ($662) ($576) ($603) ($692) ($885) ($1,054) ($1,190)
    14.0% 12.0% 12.0% 12.0% 12.0% 12.0%
    Change in Working Capital ($6.6) (9.3) (220.4) (178.3) (389.1) (341.4) (274.6)

    Free cash flow ($20) $37 $165 $320 $320 $647 $841
    % FCF Margin -0.5% 0.9% 3.3% 5.6% 4.3% 7.4% 8.5%

    Discounted Cash Flows


    Assumptions
    WACC 7.00% Midpoint of WACC range
    EBITDA Multiple 10.4× Median of industry
    Perpetuity Growth Rate 3.0% Long-term inflation expectations + real growth
    TV Perp (1), Multiple (0) -

    Year Counter 1 2 3 4 5 6
    Free Cash Flow $37 $165 $320 $320 $647 $841
    Terminal Value Estimate $32,957
    Total Cash Flows $37 $165 $320 $320 $647 $33,798
    Present Value of Cash Flows $35 $144 $261 $244 $461 $22,527

    Enterprise Value (equity + debt) $23,673 Terminal Value


    $1,541 Multiple Perpetuity
    Implied Equity Value $25,214 32,957 21,683
    Diluted Shares Outstanding 269
    Share Price $94
    Reported Projected
    2009 2010 2011 2012 2013 2014 2015
    Revenue sources
    Personalized Genetic Health 1,850.0 1,665.0 2,164.5 2,489.2 2,787.9 3,122.4 3,497.1
    % Growth -10.0% 30.0% 15.0% 12.0% 12.0% 12.0%
    Renal and Endocrinology 1,008.0 1,038.2 1,069.4 1,101.5 1,134.5 850.9 595.6
    % Growth 3.0% 3.0% 3.0% 3.0% -25.0% -30.0%
    Biosurgery 513.7 590.8 679.4 781.3 898.5 1,033.2 1,157.2
    % Growth 15.0% 15.0% 15.0% 15.0% 15.0% 12.0%
    Hematology and Oncology 509.8 688.2 894.7 1,118.4 1,342.0 1,543.4 1,774.9
    % Growth 35.0% 30.0% 25.0% 20.0% 15.0% 15.0%
    Other 29.1 20.4 21.0 21.6 22.3 22.9 23.6
    % Growth -30.0% 3.0% 3.0% 3.0% 3.0% 3.0%
    Pipeline (Prob. Adj.) - - - 20.0 70.0 220.0 300.0
    % Growth 250.0% 214.3% 67.0%
    Revenues $4,076.67 4,002.6 4,828.9 5,531.9 6,255.2 6,792.8 7,348.4
    % Growth -2.9% -1.8% 20.6% 14.6% 13.1% 8.6% 8.2%
    COGS ($1,386) ($1,281) ($1,473) ($1,604) ($1,720) ($1,766) ($1,911)
    % of Revenues -34.0% 32.0% 30.5% 29.0% 27.5% 26.0% 26.0%

    Gross Profit $2,691 $2,722 $3,356 $3,928 $4,535 $5,027 $5,438


    % Gross Margin 66.0% 68.0% 69.5% 71.0% 72.5% 74.0% 74.0%
    General & Administrative ($1,429) ($1,301) ($1,497) ($1,632) ($1,845) ($2,004) ($2,168)
    % of Revenues -35.0% 32.5% 31.0% 29.5% 29.5% 29.5% 29.5%

    R&D ($865) ($841) ($1,014) ($1,162) ($1,314) ($1,426) ($1,543)


    % of Revenues -21.2% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0%

    Service and R&D Revenues $439 $400 $483 $553 $626 $679 $735
    10.8% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

    EBITDA $836 $981 $1,328 $1,687 $2,002 $2,276 $2,462


    Reported Projected
    2009 2010 2011 2012 2013 2014 2015
    EBITDA $836 $981 $1,328 $1,687 $2,002 $2,276 $2,462
    Depreciation & Amortization ($266) ($280) ($338) ($387) ($438) ($475) ($514)
    % of Revenues -6.5% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%

    Other Expenses ($66) ($200) ($48) ($55) ($63) $0 $0


    % of Revenues -1.6% 5.0% 1.0% 1.0% 1.0% 0.0% 0.0%

    Operating Income $504 $500 $942 $1,245 $1,501 $1,800 $1,947


    % EBIT Margin 12.4% 12.5% 19.5% 22.5% 24.0% 26.5% 26.5%
    Taxes ($121) ($175) ($330) ($436) ($525) ($630) ($682)
    % Tax rate -22.3% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%

    NOPAT $382 $325 $612 $809 $976 $1,170 $1,266


    9% 8.1% 12.7% 14.6% 15.6% 17.2% 17.2%
    Depreciation & Amortization $266 $280 $338 $387 $438 $475 $514
    Capital Expenditures ($662) ($560) ($579) ($664) ($751) ($815) ($882)
    14.0% 12.0% 12.0% 12.0% 12.0% 12.0%
    Change in Working Capital ($7) 17.9 (199.9) (170.1) (175.0) (130.1) (134.4)

    Free cash flow ($20) $63 $171 $362 $488 $700 $764
    % FCF Margin -0.5% 1.6% 3.5% 6.6% 7.8% 10.3% 10.4%

    Discounted Cash Flows


    Assumptions
    WACC 7.00% Midpoint of WACC range
    EBITDA Multiple 10.4× Median of industry
    Perpetuity Growth Rate 3.0% Long-term inflation expectations + real growth
    TV Perp (1), Multiple (0) -

    Year ==> 1 2 3 4 5 6
    Free Cash Flow $63 $171 $362 $488 $700 $764
    Terminal Value Estimate $25,566
    Total Cash Flows $63 $171 $362 $488 $700 $26,330
    Present Value of Cash Flows $59 $149 $296 $372 $499 $17,549

    Enterprise Value (equity + debt) $18,925 Terminal Value


    $1,541 Multiple Perpetuity
    Implied Equity Value $20,466 $25,566 $19,694
    Diluted Shares Outstanding 269
    Share Price $76

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