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 718.501,031.601,4761,926.702,448.503,331.634,533.306,168.398,393.2211,420.52
Revenue (%)
Operating Cash Flow 92123.20314.50475.60442.50591.78805.221,095.651,490.832,028.55
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 2656.10134.50276.6053.30231.23314.63428.11582.53792.64

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 718.501,031.601,4761,926.702,448.503,331.634,533.306,168.398,393.2211,420.52
Operating Cash Flow 92123.20314.50475.60442.50591.78805.221,095.651,490.832,028.55
Capital Expenditure -66-67.10-180-199-389.20-360.55-490.59-667.53-908.30-1,235.91
Free Cash Flow 2656.10134.50276.6053.30231.23314.63428.11582.53792.64
WACC
PV LFCF 138.56173.11216.28270.21337.60
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