Discounted Cash Flow (DCF) Analysis Levered

DexCom, Inc. (DXCM)

$107.85

-0.58 (-0.53%)

All numbers are in Millions, Currency in USD

Stock DCF: 21.35 | 107.85 | overvalue

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	718.50	1,031.60	1,476	1,926.70	2,448.50	3,331.63	4,533.30	6,168.39	8,393.22	11,420.52
Revenue (%)
Operating Cash Flow	92	123.20	314.50	475.60	442.50	591.78	805.22	1,095.65	1,490.83	2,028.55
Operating Cash Flow (%)
Capital Expenditure	-66	-67.10	-180	-199	-389.20	-360.55	-490.59	-667.53	-908.30	-1,235.91
Capital Expenditure (%)
Free Cash Flow	26	56.10	134.50	276.60	53.30	231.23	314.63	428.11	582.53	792.64

Weighted Average Cost Of Capital

Share price	$ 107.85
Beta	1.159
Diluted Shares Outstanding	400.40
Cost of Debt
Tax Rate	11.04
After-tax Cost of Debt	4.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.090
Total Debt	1,878.80
Total Equity	43,183.14
Total Capital	45,061.94
Debt Weighting	4.17
Equity Weighting	95.83
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	718.50	1,031.60	1,476	1,926.70	2,448.50	3,331.63	4,533.30	6,168.39	8,393.22	11,420.52
Operating Cash Flow	92	123.20	314.50	475.60	442.50	591.78	805.22	1,095.65	1,490.83	2,028.55
Capital Expenditure	-66	-67.10	-180	-199	-389.20	-360.55	-490.59	-667.53	-908.30	-1,235.91
Free Cash Flow	26	56.10	134.50	276.60	53.30	231.23	314.63	428.11	582.53	792.64
WACC
PV LFCF						138.56	173.11	216.28	270.21	337.60
SUM PV LFCF										1,740.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.91
Free cash flow (t + 1)	808.49
Terminal Value	11,700.27
Present Value of Terminal Value	7,635.84

Intrinsic Value

Enterprise Value	9,376.15
Net Debt	826.20
Equity Value	8,549.95
Shares Outstanding	400.40
Equity Value Per Share	21.35