Discounted Cash Flow (DCF) Analysis Levered
ADT Inc. (ADT)
$8.35
-0.13 (-1.53%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 4,315.50 | 4,581.67 | 5,125.66 | 5,314.79 | 5,307 | 5,593.37 | 5,895.19 | 6,213.30 | 6,548.57 | 6,901.93 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,591.93 | 1,787.61 | 1,873.12 | 1,366.75 | 1,650 | 1,893.42 | 1,995.59 | 2,103.28 | 2,216.77 | 2,336.39 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -713.35 | -703.09 | -701.15 | -575.55 | -168 | -666.17 | -702.11 | -740 | -779.93 | -822.01 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 878.58 | 1,084.52 | 1,171.97 | 791.20 | 1,482 | 1,227.26 | 1,293.48 | 1,363.28 | 1,436.84 | 1,514.37 |
Weighted Average Cost Of Capital
| Share price | $ 8.35 |
|---|---|
| Beta | 1.795 |
| Diluted Shares Outstanding | 778 |
| Cost of Debt | |
| Tax Rate | 27.60 |
| After-tax Cost of Debt | -3.42% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.084 |
| Total Debt | 9,693 |
| Total Equity | 6,496.30 |
| Total Capital | 16,189.30 |
| Debt Weighting | 59.87 |
| Equity Weighting | 40.13 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 4,315.50 | 4,581.67 | 5,125.66 | 5,314.79 | 5,307 | 5,593.37 | 5,895.19 | 6,213.30 | 6,548.57 | 6,901.93 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,591.93 | 1,787.61 | 1,873.12 | 1,366.75 | 1,650 | 1,893.42 | 1,995.59 | 2,103.28 | 2,216.77 | 2,336.39 |
| Capital Expenditure | -713.35 | -703.09 | -701.15 | -575.55 | -168 | -666.17 | -702.11 | -740 | -779.93 | -822.01 |
| Free Cash Flow | 878.58 | 1,084.52 | 1,171.97 | 791.20 | 1,482 | 1,227.26 | 1,293.48 | 1,363.28 | 1,436.84 | 1,514.37 |
| WACC | ||||||||||
| PV LFCF | 1,039.86 | 1,066.12 | 1,093.05 | 1,120.65 | 1,148.95 | |||||
| SUM PV LFCF | 6,278.34 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 2.80 |
| Free cash flow (t + 1) | 1,544.66 |
| Terminal Value | 193,082.56 |
| Present Value of Terminal Value | 168,181.21 |
Intrinsic Value
| Enterprise Value | 174,459.55 |
|---|---|
| Net Debt | 9,669 |
| Equity Value | 164,790.55 |
| Shares Outstanding | 778 |
| Equity Value Per Share | 211.81 |