1993 1994 1995 1996 1997 1998 1999Costs incurred (NPV) Year (in mn)

upfront costs 1 2 3 4 5 6 7For Special 37.5 6.8 6.8 6.8 6.8 6.8 6.8 6.8discounted costs 44.3 5.980651 5.260027 4.626233 4.068807 3.578546 3.147358

Risks associated/ opportunity costCost of lost sales per yr (max) 175

Underutilizing capacityRetrofit (~cost of setup)

flexible pla 150 9.48 9.48 9.48 9.48 9.48 9.48 9.48159.48 8.337731 7.333097 6.449513 5.672395 4.988914 4.387787

Risk free r 6%Market pr 10%Beta (indus 0.77WACC 13.7%

2000 2001 2002 2003 2004 2005 2006 2007

8 9 10 11 12 13 14 156.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8

2.768125 2.434586 2.141237 1.883234 1.656318 1.45674433 1.281218 1.12684 85.70992413

Lost sales/yea 175

9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.483.859092 3.3941 2.985136 2.62545 2.309103 2.03087298 1.786168 1.570948 217.210306

1996 1997 1998 1999 2000 2001 2002Alfatine 7000 8000 9000 10000 16000 16000 16000Betazine 2500 2700 3000 3100 4000 4000 4000Clorazine 500 500 750 750 1000 1000 1000Total 10000 11200 12750 13850 21000 21000 21000

7,000 8,000 9,000 10,000 16,000 16,000

2,500 2,700 3,000 3,100 4,000 4,000

500 500 750 750 1,000 1,000

10,000 11,200 12,750 13,850 21,000 21,000

Total capacity 14,625 14,625 14,625 14,625 14,625 14,625

Volumes Required Annually (bulk drug in kilograms)

Year 11996

Year 21997

Year 31998

Year 41999

Year 52000

Year 62001

Alfatine

Betazine

Clorazine

Total demand

200316000

40001000

21000

16,000 16,000 16,000 16,000

4,000 4,000 4,000 4,000

1,000 1,000 1,000 1,000

21,000 21,000 21,000 21,000

14,625 14,625 14,625 14,625

Year 72002

Year 82003

Year 92004

Year 102005

Eli Lilly & Co., EV/FCFF calculation

Dec 31, 2013 Dec 31, 2012

Selected Financial Data (USD $ in thousands)Enterprise value (EV) 64,869,033 61,136,623Free cash flow to the firm (FCFF) 5,032,603 4,567,232RatioEV/FCFF 12.89 13.39BenchmarksEV/FCFF, CompetitorsAbbott Laboratories 25.21 7.50Allergan Inc. 22.87 20.54AstraZeneca PLC 13.81 20.43Bristol-Myers Squibb Co. 28.83 9.69GlaxoSmithKline PLC 18.29 23.24Johnson & Johnson 17.16 15.99Merck & Co. Inc. 16.28 15.61Novartis AG 19.48 14.71Pfizer Inc. 11.91 11.78EV/FCFF, SectorPharmaceuticals 16.61 14.17EV/FCFF, IndustryHealth Care 17.51 14.08

Source: www.stock-analysis-on.net

Copyright © 2015 Stock Analysis on Net

Dec 31, 2011 Dec 31, 2010 Dec 31, 2009

45,397,687 40,050,398 41,915,0236,744,732 6,344,267 3,778,945

6.73 6.31 11.09

12.00 10.28 13.7926.09 70.53 16.89

7.66 7.12 5.8011.43 9.86 11.5616.22 14.40 11.1213.93 10.54 11.5310.89 11.31 56.6811.25 11.69 12.30

8.71 14.35 10.20

11.04 11.14 12.00

11.26 11.20 12.00