Discounted Cash Flow (DCF) Analysis Levered
Dell Technologies Inc. (DELL)
$47.27
+1.81 (+3.98%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 90,621 | 92,154 | 94,224 | 101,197 | 102,301 | 105,479.82 | 108,757.42 | 112,136.87 | 115,621.32 | 119,214.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,991 | 9,291 | 11,407 | 10,307 | 1,143 | 8,692.64 | 8,962.75 | 9,241.25 | 9,528.40 | 9,824.48 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,497 | -2,576 | -2,082 | -2,796 | -3,003 | -2,606.46 | -2,687.45 | -2,770.96 | -2,857.06 | -2,945.84 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 5,494 | 6,715 | 9,325 | 7,511 | -1,860 | 6,086.18 | 6,275.29 | 6,470.29 | 6,671.34 | 6,878.64 |
Weighted Average Cost Of Capital
| Share price | $ 47.27 |
|---|---|
| Beta | 0.975 |
| Diluted Shares Outstanding | 767 |
| Cost of Debt | |
| Tax Rate | 24.28 |
| After-tax Cost of Debt | 3.79% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.292 |
| Total Debt | 29,588 |
| Total Equity | 36,256.09 |
| Total Capital | 65,844.09 |
| Debt Weighting | 44.94 |
| Equity Weighting | 55.06 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 90,621 | 92,154 | 94,224 | 101,197 | 102,301 | 105,479.82 | 108,757.42 | 112,136.87 | 115,621.32 | 119,214.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,991 | 9,291 | 11,407 | 10,307 | 1,143 | 8,692.64 | 8,962.75 | 9,241.25 | 9,528.40 | 9,824.48 |
| Capital Expenditure | -1,497 | -2,576 | -2,082 | -2,796 | -3,003 | -2,606.46 | -2,687.45 | -2,770.96 | -2,857.06 | -2,945.84 |
| Free Cash Flow | 5,494 | 6,715 | 9,325 | 7,511 | -1,860 | 6,086.18 | 6,275.29 | 6,470.29 | 6,671.34 | 6,878.64 |
| WACC | ||||||||||
| PV LFCF | 5,727.09 | 5,556.64 | 5,391.27 | 5,230.83 | 5,075.15 | |||||
| SUM PV LFCF | 26,980.98 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.27 |
| Free cash flow (t + 1) | 7,016.21 |
| Terminal Value | 164,314.08 |
| Present Value of Terminal Value | 121,233.15 |
Intrinsic Value
| Enterprise Value | 148,214.13 |
|---|---|
| Net Debt | 20,981 |
| Equity Value | 127,233.13 |
| Shares Outstanding | 767 |
| Equity Value Per Share | 165.88 |