DCF valuation of Novo Nordisk

Novo Nordisk
Revenue Growth (5 year) 9.50%
year 0 1 2 3 4 5
growth rate 0.095 0.095 0.095 0.095 0.095
revenue 113020.00 123756.90 135513.81 148387.62 162484.44 177920.46
operatingmargin 0.40 0.40 0.40 0.40 0.40 0.40
operating income (EBIT)  45208.00 49502.76 54205.52 59355.05 64993.78 71168.19
tax rate 0.23 0.23 0.23 0.23 0.23 0.23
tax adjusted EBIT 34810.16 38117.13 41738.25 45703.39 50045.21 54799.50
"+Depreciation and Amortization" 3277.00 3588.32 3929.20 4302.48 4711.21 5158.78
"-Capex" 7581.00 8301.20 9089.81 9953.34 10898.91 11934.30
"-working capital" 1937.00 2121.02 2322.51 2543.15 2784.75 3049.30
Free Cash flow 28569.16 31283.23 34255.14 37509.38 41072.77 44974.68
PV of free cash flow 28569.16 29244.86 29936.55 30644.59 31369.38 32111.31
Total PV of cash flows 181875.86
WACC 　
Discount rate 6.97%
　 Calculating the WACC 　
　 　
E(market cap) 721,750 　
D(Debt) 259 　
V 722,009 　
　 　
　 　
RFR 10 year US government bond 2.14%
beta According to NASDAQ.com 0.84
Equity Market Risk Premium 5.75%
　 　
CAPM 6.97% cost of equity
　 　
　 　
　 cost of debt
interest rate 4.00% (annual report)
tax rate 20.93% 　
　 　
　 3.16% cost of debt 
　 　
WACC 6.97% 　
　 Calculating the Perpetuity Value 
Final Year FCF 44975.00
GDP growth rate 2.60%
Discount rate 6.97%
　 　
Perpetuity value 1056264.89
Terminal Value 754207.05
Enterprise Value 936082.91
Fair Value of Nike 　
Enterprise value  936082.91
Debt 259
Cash equivalents 20699
　 　
Fair Value 956522.91
calculating intrinsic value per share
Fair Value 956522.91
Shares Outstanding  2550.00
Intrinsic value per share  375.11
　 　
Current share value 278.00
Therefore UNDERVALUED
Upside 26%

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