Discounted Cash Flow (DCF) Analysis Levered

DexCom, Inc. (DXCM)

$121.74

+6.67 (+5.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 33.41 | 121.74 | overvalue

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 1,4761,926.702,448.502,909.803,622.304,536.425,681.247,114.968,910.4911,159.15
Revenue (%)
Operating Cash Flow 314.50475.60442.50669.50748.50977.481,224.161,533.081,919.972,404.50
Operating Cash Flow (%)
Capital Expenditure -180-199-389.20-364.80-236.60-521.58-653.20-818.05-1,024.49-1,283.03
Capital Expenditure (%)
Free Cash Flow 134.50276.6053.30304.70511.90455.90570.95715.04895.481,121.47

Weighted Average Cost Of Capital

Share price $ 121.74
Beta 1.198
Diluted Shares Outstanding 425.50
Cost of Debt
Tax Rate 23.78
After-tax Cost of Debt 3.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.814
Total Debt 2,594
Total Equity 51,800.37
Total Capital 54,394.37
Debt Weighting 4.77
Equity Weighting 95.23
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 1,4761,926.702,448.502,909.803,622.304,536.425,681.247,114.968,910.4911,159.15
Operating Cash Flow 314.50475.60442.50669.50748.50977.481,224.161,533.081,919.972,404.50
Capital Expenditure -180-199-389.20-364.80-236.60-521.58-653.20-818.05-1,024.49-1,283.03
Free Cash Flow 134.50276.6053.30304.70511.90455.90570.95715.04895.481,121.47
WACC
PV LFCF 416.35476.18544.61622.88712.39
SUM PV LFCF 2,772.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.50
Free cash flow (t + 1) 1,166.33
Terminal Value 21,205.96
Present Value of Terminal Value 13,470.61

Intrinsic Value

Enterprise Value 16,243.02
Net Debt 2,027.70
Equity Value 14,215.32
Shares Outstanding 425.50
Equity Value Per Share 33.41