A Listed Company Evaluation Based on DCF Model-the Case of Medical Apparatus and Instruments Industry

DOI

10.2991/assehr.k.211209.137How to use a DOI?

Keywords

Johnson&Johnson; Medical Devices; Enterprise value; Free cash flow; Cost of capital

Abstract

This study pays attention to Johnson&Johnson, which is one of the companies in the medical devices industry that a highly specialized industry with deep growth prospects to examines its enterprise value through the discount the free cash flow for the firm model. The Author conducts comprehensive research that mainly finds its result of operations, liquidity and cash flows using accounting formulas to figure out cash flow from operations and free cash flow for the firm. The paper also demonstrates how to get the weighted average cost of capital by financing data such as interest expense and dividend. Finally, it can calculate the intrinsic value through discount free cash flow by discount capital and determine whether the difference exists between the calculating result and current share price on the market.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Luyao Cheng
PY  - 2021
DA  - 2021/12/15
TI  - A Listed Company Evaluation Based on DCF Model-the Case of Medical Apparatus and Instruments Industry
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 846
EP  - 850
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.137
DO  - 10.2991/assehr.k.211209.137
ID  - Cheng2021
ER  -