Discounted Cash Flow (DCF) Analysis Levered

Adobe Inc. (ADBE)

$385.37

+3.47 (+0.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 413.15 | 385.37 | undervalue

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 9,030.0111,171.3012,86815,78517,60620,823.7624,629.6129,131.0534,455.1840,752.38
Revenue (%)
Operating Cash Flow 4,029.304,421.815,7277,2307,8389,122.0910,789.2912,761.1915,093.4917,852.06
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 3,762.724,027.335,3086,8827,3968,520.0910,077.2711,919.0414,097.4216,673.94

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 9,030.0111,171.3012,86815,78517,60620,823.7624,629.6129,131.0534,455.1840,752.38
Operating Cash Flow 4,029.304,421.815,7277,2307,8389,122.0910,789.2912,761.1915,093.4917,852.06
Capital Expenditure -266.58-394.48-419-348-442-602-712.02-842.16-996.07-1,178.12
Free Cash Flow 3,762.724,027.335,3086,8827,3968,520.0910,077.2711,919.0414,097.4216,673.94
WACC
PV LFCF 7,794.438,433.799,125.609,874.1610,684.12
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