Discounted Cash Flow (DCF) Analysis Levered

A10 Networks, Inc. (ATEN)

$12.67

+0.18 (+1.44%)

All numbers are in Millions, Currency in USD

Stock DCF: 7.07 | 12.67 | overvalue

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	232.22	212.63	225.53	250.04	280.34	294.79	309.98	325.95	342.75	360.42
Revenue (%)
Operating Cash Flow	-2.69	-0.43	55.29	50.10	66.10	39.36	41.39	43.53	45.77	48.13
Operating Cash Flow (%)
Capital Expenditure	-2.80	-4.34	-3.56	-5.17	-10.80	-6.34	-6.66	-7.01	-7.37	-7.75
Capital Expenditure (%)
Free Cash Flow	-5.49	-4.77	51.72	44.93	55.30	33.03	34.73	36.52	38.40	40.38

Weighted Average Cost Of Capital

Share price	$ 12.67
Beta	1.050
Diluted Shares Outstanding	80.02
Cost of Debt
Tax Rate	11.02
After-tax Cost of Debt	6.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.112
Total Debt	21.64
Total Equity	1,013.84
Total Capital	1,035.48
Debt Weighting	2.09
Equity Weighting	97.91
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	232.22	212.63	225.53	250.04	280.34	294.79	309.98	325.95	342.75	360.42
Operating Cash Flow	-2.69	-0.43	55.29	50.10	66.10	39.36	41.39	43.53	45.77	48.13
Capital Expenditure	-2.80	-4.34	-3.56	-5.17	-10.80	-6.34	-6.66	-7.01	-7.37	-7.75
Free Cash Flow	-5.49	-4.77	51.72	44.93	55.30	33.03	34.73	36.52	38.40	40.38
WACC
PV LFCF						30.29	29.20	28.15	27.15	26.17
SUM PV LFCF										140.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.06
Free cash flow (t + 1)	41.19
Terminal Value	583.43
Present Value of Terminal Value	378.15

Intrinsic Value

Enterprise Value	519.11
Net Debt	-46.33
Equity Value	565.44
Shares Outstanding	80.02
Equity Value Per Share	7.07