Discounted Cash Flow (DCF) Analysis Levered

Adobe Inc. (ADBE)

$567.94

-2.99 (-0.52%)
All numbers are in Millions, Currency in USD
Stock DCF: 450.11 | 567.94 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 11,171.3012,86815,78517,60619,40922,302.5825,627.5529,448.2233,838.4938,883.28
Revenue (%)
Operating Cash Flow 4,421.315,7277,2237,8387,3029,455.5110,865.1812,485.0114,346.3316,485.15
Operating Cash Flow (%)
Capital Expenditure -333.98-419-330-442-360-566.56-651.03-748.08-859.61-987.77
Capital Expenditure (%)
Free Cash Flow 4,087.335,3086,8937,3966,9428,888.9510,214.1611,736.9313,486.7215,497.38

Weighted Average Cost Of Capital

Share price $ 567.94
Beta 1.294
Diluted Shares Outstanding 459
Cost of Debt
Tax Rate 20.16
After-tax Cost of Debt 3.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.318
Total Debt 4,080
Total Equity 260,684.46
Total Capital 264,764.46
Debt Weighting 1.54
Equity Weighting 98.46
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 11,171.3012,86815,78517,60619,40922,302.5825,627.5529,448.2233,838.4938,883.28
Operating Cash Flow 4,421.315,7277,2237,8387,3029,455.5110,865.1812,485.0114,346.3316,485.15
Capital Expenditure -333.98-419-330-442-360-566.56-651.03-748.08-859.61-987.77
Free Cash Flow 4,087.335,3086,8937,3966,9428,888.9510,214.1611,736.9313,486.7215,497.38
WACC
PV LFCF 8,065.478,409.318,767.829,141.609,531.33
SUM PV LFCF 43,915.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.21
Free cash flow (t + 1) 16,117.28
Terminal Value 259,537.48
Present Value of Terminal Value 159,622.85

Intrinsic Value

Enterprise Value 203,538.38
Net Debt -3,061
Equity Value 206,599.38
Shares Outstanding 459
Equity Value Per Share 450.11