Discounted Cash Flow (DCF) Analysis Levered

Adobe Inc. (ADBE)

$377.475

-6.35 (-1.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 417.44 | 377.475 | 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 $ 377.475
Beta 1.228
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 9.435
Total Debt 4,633
Total Equity 177,790.73
Total Capital 182,423.73
Debt Weighting 2.54
Equity Weighting 97.46
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 7,799.438,444.619,143.169,899.4910,718.39
SUM PV LFCF 46,005.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.24
Free cash flow (t + 1) 17,007.42
Terminal Value 234,909.06
Present Value of Terminal Value 151,004.99

Intrinsic Value

Enterprise Value 197,010.07
Net Debt 397
Equity Value 196,613.07
Shares Outstanding 471
Equity Value Per Share 417.44