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 232.22212.63225.53250.04280.34294.79309.98325.95342.75360.42
Revenue (%)
Operating Cash Flow -2.69-0.4355.2950.1066.1039.3641.3943.5345.7748.13
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 -5.49-4.7751.7244.9355.3033.0334.7336.5238.4040.38

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 232.22212.63225.53250.04280.34294.79309.98325.95342.75360.42
Operating Cash Flow -2.69-0.4355.2950.1066.1039.3641.3943.5345.7748.13
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 -5.49-4.7751.7244.9355.3033.0334.7336.5238.4040.38
WACC
PV LFCF 30.2929.2028.1527.1526.17
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