Discounted Cash Flow (DCF) Analysis Levered
Adobe Inc. (ADBE)
$385.37
+3.47 (+0.91%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 9,030.01 | 11,171.30 | 12,868 | 15,785 | 17,606 | 20,823.76 | 24,629.61 | 29,131.05 | 34,455.18 | 40,752.38 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,029.30 | 4,421.81 | 5,727 | 7,230 | 7,838 | 9,122.09 | 10,789.29 | 12,761.19 | 15,093.49 | 17,852.06 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -266.58 | -394.48 | -419 | -348 | -442 | -602 | -712.02 | -842.16 | -996.07 | -1,178.12 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,762.72 | 4,027.33 | 5,308 | 6,882 | 7,396 | 8,520.09 | 10,077.27 | 11,919.04 | 14,097.42 | 16,673.94 |
Weighted Average Cost Of Capital
| Share price | $ 385.37 |
|---|---|
| Beta | 1.271 |
| Diluted Shares Outstanding | 471 |
| Cost of Debt | |
| Tax Rate | 20.84 |
| After-tax Cost of Debt | 1.92% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.495 |
| Total Debt | 4,633 |
| Total Equity | 181,509.27 |
| Total Capital | 186,142.27 |
| Debt Weighting | 2.49 |
| Equity Weighting | 97.51 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 9,030.01 | 11,171.30 | 12,868 | 15,785 | 17,606 | 20,823.76 | 24,629.61 | 29,131.05 | 34,455.18 | 40,752.38 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,029.30 | 4,421.81 | 5,727 | 7,230 | 7,838 | 9,122.09 | 10,789.29 | 12,761.19 | 15,093.49 | 17,852.06 |
| Capital Expenditure | -266.58 | -394.48 | -419 | -348 | -442 | -602 | -712.02 | -842.16 | -996.07 | -1,178.12 |
| Free Cash Flow | 3,762.72 | 4,027.33 | 5,308 | 6,882 | 7,396 | 8,520.09 | 10,077.27 | 11,919.04 | 14,097.42 | 16,673.94 |
| WACC | ||||||||||
| PV LFCF | 7,794.43 | 8,433.79 | 9,125.60 | 9,874.16 | 10,684.12 | |||||
| SUM PV LFCF | 45,912.10 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.31 |
| Free cash flow (t + 1) | 17,007.42 |
| Terminal Value | 232,659.59 |
| Present Value of Terminal Value | 149,080.72 |
Intrinsic Value
| Enterprise Value | 194,992.82 |
|---|---|
| Net Debt | 397 |
| Equity Value | 194,595.82 |
| Shares Outstanding | 471 |
| Equity Value Per Share | 413.15 |