Discounted Cash Flow (DCF) Analysis Levered

Ciena Corporation (CIEN)

$40.6

-0.44 (-1.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 50.91 | 40.6 | undervalue

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 2,801.693,094.293,572.133,532.163,620.683,867.564,131.274,412.954,713.855,035.26
Revenue (%)
Operating Cash Flow 234.88229.26413.14493.65541.65435.44465.13496.85530.72566.91
Operating Cash Flow (%)
Capital Expenditure -94.60-67.62-62.58-82.67-79.55-91.67-97.92-104.60-111.73-119.35
Capital Expenditure (%)
Free Cash Flow 140.28161.65350.56410.99462.10343.77367.21392.25419447.56

Weighted Average Cost Of Capital

Share price $ 40.6
Beta 0.903
Diluted Shares Outstanding 156.74
Cost of Debt
Tax Rate -8.09
After-tax Cost of Debt 3.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.959
Total Debt 803.68
Total Equity 6,363.77
Total Capital 7,167.45
Debt Weighting 11.21
Equity Weighting 88.79
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 2,801.693,094.293,572.133,532.163,620.683,867.564,131.274,412.954,713.855,035.26
Operating Cash Flow 234.88229.26413.14493.65541.65435.44465.13496.85530.72566.91
Capital Expenditure -94.60-67.62-62.58-82.67-79.55-91.67-97.92-104.60-111.73-119.35
Free Cash Flow 140.28161.65350.56410.99462.10343.77367.21392.25419447.56
WACC
PV LFCF 319.79317.76315.75313.74311.76
SUM PV LFCF 1,578.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.50
Free cash flow (t + 1) 456.52
Terminal Value 8,300.29
Present Value of Terminal Value 5,781.64

Intrinsic Value

Enterprise Value 7,360.43
Net Debt -618.86
Equity Value 7,979.30
Shares Outstanding 156.74
Equity Value Per Share 50.91