Discounted Cash Flow (DCF) Analysis Levered

Cadence Design Systems, Inc. (CDNS)

$185.85

-3.37 (-1.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 60.40 | 185.85 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,943.032,138.022,336.322,561.892,809.243,080.483,377.903,704.044,061.674,453.824,883.84
Revenue (%)
Operating Cash Flow 470.74604.75729.60715.12784.17859.88942.901,033.941,133.761,243.231,363.26
Operating Cash Flow (%)
Capital Expenditure -57.90-61.50-74.60-77.28-84.74-92.93-101.90-111.74-122.52-134.35-147.33
Capital Expenditure (%)
Free Cash Flow 412.84543.25655637.84699.42766.95841922.201,011.241,108.871,215.94

Weighted Average Cost Of Capital

Share price $ 185.85
Beta 1.099
Diluted Shares Outstanding 278.86
Cost of Debt
Tax Rate 9.43
After-tax Cost of Debt 3.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.718
Total Debt 454.71
Total Equity 51,825.76
Total Capital 52,280.47
Debt Weighting 0.87
Equity Weighting 99.13
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,943.032,138.022,336.322,561.892,809.243,080.483,377.903,704.044,061.674,453.824,883.84
Operating Cash Flow 470.74604.75729.60715.12784.17859.88942.901,033.941,133.761,243.231,363.26
Capital Expenditure -57.90-61.50-74.60-77.28-84.74-92.93-101.90-111.74-122.52-134.35-147.33
Free Cash Flow 412.84543.25655637.84699.42766.95841922.201,011.241,108.871,215.94
WACC
PV LFCF 693.14699.42705.76712.16718.61725.13731.70738.33
SUM PV LFCF 3,940.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.67
Free cash flow (t + 1) 1,240.26
Terminal Value 18,594.54
Present Value of Terminal Value 12,269.79

Intrinsic Value

Enterprise Value 16,210.10
Net Debt -634.23
Equity Value 16,844.33
Shares Outstanding 278.86
Equity Value Per Share 60.40