Discounted Cash Flow (DCF) Analysis Levered

A10 Networks, Inc. (ATEN)

$14.98

+0.36 (+2.46%)

All numbers are in Millions, Currency in USD

Stock DCF: 12.58 | 14.98 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	212.63	225.53	250.04	280.34	307.49	337.26	369.93	405.75	445.05	488.15
Revenue (%)
Operating Cash Flow	-0.43	55.29	50.10	66.10	52.22	57.27	62.82	68.90	75.58	82.90
Operating Cash Flow (%)
Capital Expenditure	-4.34	-3.56	-5.17	-10.80	-7.33	-8.05	-8.82	-9.68	-10.62	-11.64
Capital Expenditure (%)
Free Cash Flow	-4.77	51.72	44.93	55.30	44.88	49.23	54	59.23	64.96	71.25

Weighted Average Cost Of Capital

Share price	$ 14.98
Beta	1.048
Diluted Shares Outstanding	80.02
Cost of Debt
Tax Rate	11.02
After-tax Cost of Debt	4.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.754
Total Debt	-
Total Equity	1,198.68
Total Capital	1,198.68
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	212.63	225.53	250.04	280.34	307.49	337.26	369.93	405.75	445.05	488.15
Operating Cash Flow	-0.43	55.29	50.10	66.10	52.22	57.27	62.82	68.90	75.58	82.90
Capital Expenditure	-4.34	-3.56	-5.17	-10.80	-7.33	-8.05	-8.82	-9.68	-10.62	-11.64
Free Cash Flow	-4.77	51.72	44.93	55.30	44.88	49.23	54	59.23	64.96	71.25
WACC
PV LFCF					41.27	41.63	41.98	42.34	42.71	43.07
SUM PV LFCF										230.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.75
Free cash flow (t + 1)	72.68
Terminal Value	1,076.70
Present Value of Terminal Value	707.86

Intrinsic Value

Enterprise Value	938.13
Net Debt	-68.52
Equity Value	1,006.65
Shares Outstanding	80.02
Equity Value Per Share	12.58