Discounted Cash Flow (DCF) Analysis Levered

Adobe Inc. (ADBE)

$ 662.1
-6.22 (-0.93%)
Stock DCF: 1,615.53 | 662.1 | undervalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 5,854.437,301.509,030.0111,171.3012,86815,676.1819,097.1923,264.7728,341.8434,526.87
Revenue (%)
Operating Cash Flow 2,199.732,912.854,029.304,421.815,7276,464.127,874.799,593.3011,686.8414,237.26
Operating Cash Flow (%)
Capital Expenditure -203.81-178.12-266.58-394.48-419-490.98-598.13-728.66-887.68-1,081.40
Capital Expenditure (%)
Free Cash Flow 1,995.922,734.733,762.724,027.335,3085,973.147,276.658,864.6410,799.1713,155.87

Weighted Average Cost Of Capital

Share price $ 662.1
Beta 1.046
Diluted Shares Outstanding 485
Cost of Debt
Tax Rate -25.96
After-tax Cost of Debt 2.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.420
Total Debt 4,708
Total Equity 321,118.50
Total Capital 325,826.50
Debt Weighting 1.44
Equity Weighting 98.56
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 5,854.437,301.509,030.0111,171.3012,86815,676.1819,097.1923,264.7728,341.8434,526.87
Operating Cash Flow 2,199.732,912.854,029.304,421.815,7276,464.127,874.799,593.3011,686.8414,237.26
Capital Expenditure -203.81-178.12-266.58-394.48-419-490.98-598.13-728.66-887.68-1,081.40
Free Cash Flow 1,995.922,734.733,762.724,027.335,3085,973.147,276.658,864.6410,799.1713,155.87
WACC
PV LFCF 5,615.966,432.437,367.608,438.739,665.58
SUM PV LFCF 37,520.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.36
Free cash flow (t + 1) 13,813.66
Terminal Value 1,015,710.27
Present Value of Terminal Value 746,239.45

Intrinsic Value

Enterprise Value 783,759.74
Net Debt 230
Equity Value 783,529.74
Shares Outstanding 485
Equity Value Per Share 1,615.53