Abbott Laboratories offers value with a margin of safety

I believe ABT, at approximately $45/share offers value with a margin of safety on a cash flow valuation basis.

Abbott manufactures and markets pharmaceuticals, medical devices, blood glucose monitoring kits, and nutritional health-care products. Products include prescription drugs, coronary and carotid stents, and nutritional liquids for infants and adults. Following the Advanced Medical Optics acquisition, Abbott also markets eye-care products. Abbott generates slightly less than 60% of revenue from pharmaceuticals.
(Source: Morningstar.com)

I estimated the firm's WACC at 6.34% using the Capital Asset Pricing Model and the company's recent SEC filings but I'll assume ABT has a higher WACC of 8.60%.    
 
Recent free cash flows and noted growth rates: 

Year	FCF $Millions
2000	2064
2001	2403
2002	2887
2003	2500
2004	3116
2005	3967
2006	3991
2007	3528
2008	6056
2009	6186
TTM	7283

Average Annual Growth: approx 15%
CAGR: approx. 13%
Consensus Forecast Industry 5-Year Growth: approx. 10% per year
Consensus Forecast Company 5-Year Growth: approx. 9% per year

Assuming the company achieves a lower 5-year growth rate of 5% per year, and assuming that after the next five years, the company achieves no growth or 0% growth per year forever:

Discounted Cash Flow Valuation

Year	FCF $ Millions
0	7283
1	7647
2	8030
3	8431
4	8853
5	9295
Terminal Value	113487

The firm's future cash flows, discounted at a WACC of 8.60%, give a present value for the entire firm (Debt + Equity) of $108,077 million. If the firm's fair value of debt is estimated at $20,000 million, then the fair value of the firm's equity could be $88,077 million.

$88,077 million / 1550 million outstanding shares is approx $57 per share. A 20% margin of safety from here is approx $45 so assuming all else at ABT meets my standard for good business, I'd buy it today for the long term at $45 or less.