Discounted Cash Flow (DCF) Analysis Levered

A10 Networks, Inc. (ATEN)

$15.95

+0.11 (+0.69%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.88 | 15.95 | overvalue

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	235.43	232.22	212.63	225.53	250.04	254.50	259.04	263.67	268.37	273.16
Revenue (%)
Operating Cash Flow	14.31	-2.69	-0.43	55.29	50.10	25.08	25.53	25.98	26.44	26.92
Operating Cash Flow (%)
Capital Expenditure	-5.73	-2.80	-4.34	-3.56	-5.17	-4.75	-4.83	-4.92	-5.01	-5.10
Capital Expenditure (%)
Free Cash Flow	8.58	-5.49	-4.77	51.72	44.93	20.33	20.69	21.06	21.44	21.82

Weighted Average Cost Of Capital

Share price	$ 15.95
Beta	0.924
Diluted Shares Outstanding	80.02
Cost of Debt
Tax Rate	-199.88
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.150
Total Debt	-
Total Equity	1,276.30
Total Capital	1,276.30
Debt Weighting	0.00
Equity Weighting	100.00
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	235.43	232.22	212.63	225.53	250.04	254.50	259.04	263.67	268.37	273.16
Operating Cash Flow	14.31	-2.69	-0.43	55.29	50.10	25.08	25.53	25.98	26.44	26.92
Capital Expenditure	-5.73	-2.80	-4.34	-3.56	-5.17	-4.75	-4.83	-4.92	-5.01	-5.10
Free Cash Flow	8.58	-5.49	-4.77	51.72	44.93	20.33	20.69	21.06	21.44	21.82
WACC
PV LFCF						14.39	13.67	12.99	12.34	11.72
SUM PV LFCF										85.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.15
Free cash flow (t + 1)	22.26
Terminal Value	432.16
Present Value of Terminal Value	305.97

Intrinsic Value

Enterprise Value	391.80
Net Debt	-78.92
Equity Value	470.72
Shares Outstanding	80.02
Equity Value Per Share	5.88