Abbott Laboratories (ABT)
Discount cash flow analysis
Price history
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $59.30 | $58.33 | $57.38 | |
| Terminal Growth% | 0 | $59.64 | $58.65 | $57.69 |
| +1% | $59.97 | $58.98 | $58.01 |
How does a change in discount rate or terminal growth affect valuation?
This table shows the sensitivity of the valuation to two key variables - the discount rate and the terminal growth rate
Valuations and comments
- Valuecruncher created a new valuation of $52.56 (overvalued by 14.63%) - 7 hours ago
- Valuecruncher created a new valuation of $52.55 (overvalued by 14.65%) - 2 days ago
- tobyzero created a new valuation of $53.51 (overvalued by 0.82%) - over 2 years ago
- tobyzero created a new valuation of $53.51 (overvalued by 0.82%) - over 2 years ago
- dcullers created a new valuation of $84.63 (undervalued by 58.9%) - over 2 years ago
- dcullers created a new valuation of $71.51 (undervalued by 34.27%) - over 2 years ago
- dionysus6504 created a new valuation of $53.25 (undervalued by 20.15%) - over 2 years ago
- GordonGekko created a new valuation of $54.24 (undervalued by 22.94%) - over 3 years ago
- swampler created a new valuation of $57.07 (undervalued by 29.35%) - over 3 years ago
- swampler created a new valuation of $52.12 (undervalued by 11.61%) - over 3 years ago
- nazrul created a new valuation of $60.06 (undervalued by 28.88%) - over 3 years ago
- tuxmask created a new valuation of $95.86 (undervalued by 81.14%) - over 3 years ago
- dweis created a new valuation of $71.40 (undervalued by 26.22%) - over 3 years ago
- GordonGekko created a new valuation of $58.65 (undervalued by 1.66%) - over 4 years ago
- rbhatia created a new valuation of $92.37 (undervalued by 70.14%) - over 4 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 104,413 |
| Net Debt (Long-term borrowings less cash): | 9,392 |
| Equity Value: | 81,748 |
| Number of Shares Outstanding: | 1,543,000,000 |
| Calculated value per share: | $58.65 |
Enterprise Value is the present value of the post-tax cash flows for a business into the future.
Where:
- C1, C2, C3 - the cash flow in period 1, 2, 3, ...
- r - the discount rate
To capture the cash flows into the future a terminal value is calculated via a perpetuity calculation -
based on the final years forecast post-tax free cash flow.
Where:
- Cn - the cash flow in the final forecast period.
- LTG - the long-term growth rate
- r - the discount rate
- g - the terminal growth rate
The Capital Asset Pricing Model (CAPM) is used to determine the equity component in the discount rate.
Where:
- rt - the risk free rate
- t - the tax rate
- B - the beta of the company
- MRP - the Market Risk Premium
Valuecruncher uses an estimate of Weighted Average Cost of Capital (WACC) to determine the discount rate in the calculation.