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
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 | 1,943.03 | 2,138.02 | 2,336.32 | 2,561.89 | 2,809.24 | 3,080.48 | 3,377.90 | 3,704.04 | 4,061.67 | 4,453.82 | 4,883.84 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 470.74 | 604.75 | 729.60 | 715.12 | 784.17 | 859.88 | 942.90 | 1,033.94 | 1,133.76 | 1,243.23 | 1,363.26 |
| 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 | 412.84 | 543.25 | 655 | 637.84 | 699.42 | 766.95 | 841 | 922.20 | 1,011.24 | 1,108.87 | 1,215.94 |
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 | 1,943.03 | 2,138.02 | 2,336.32 | 2,561.89 | 2,809.24 | 3,080.48 | 3,377.90 | 3,704.04 | 4,061.67 | 4,453.82 | 4,883.84 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 470.74 | 604.75 | 729.60 | 715.12 | 784.17 | 859.88 | 942.90 | 1,033.94 | 1,133.76 | 1,243.23 | 1,363.26 |
| 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 | 412.84 | 543.25 | 655 | 637.84 | 699.42 | 766.95 | 841 | 922.20 | 1,011.24 | 1,108.87 | 1,215.94 |
| WACC | |||||||||||
| PV LFCF | 693.14 | 699.42 | 705.76 | 712.16 | 718.61 | 725.13 | 731.70 | 738.33 | |||
| 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 |