Discounted Cash Flow (DCF) Analysis Levered

Extreme Networks, Inc. (EXTR)

$12.38

+0.05 (+0.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 14.09 | 12.38 | undervalue

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 995.79948.021,009.421,112.321,312.451,410.451,515.761,628.931,750.561,881.26
Revenue (%)
Operating Cash Flow 104.9435.88144.54128.18249.21166.87179.33192.72207.11222.57
Operating Cash Flow (%)
Capital Expenditure -22.73-15.27-17.18-15.43-13.80-22.66-24.35-26.17-28.13-30.23
Capital Expenditure (%)
Free Cash Flow 82.2120.62127.36112.74235.41144.21154.97166.54178.98192.34

Weighted Average Cost Of Capital

Share price $ 12.38
Beta 1.957
Diluted Shares Outstanding 133.65
Cost of Debt
Tax Rate 17.04
After-tax Cost of Debt 5.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.522
Total Debt 264.61
Total Equity 1,654.57
Total Capital 1,919.18
Debt Weighting 13.79
Equity Weighting 86.21
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 995.79948.021,009.421,112.321,312.451,410.451,515.761,628.931,750.561,881.26
Operating Cash Flow 104.9435.88144.54128.18249.21166.87179.33192.72207.11222.57
Capital Expenditure -22.73-15.27-17.18-15.43-13.80-22.66-24.35-26.17-28.13-30.23
Free Cash Flow 82.2120.62127.36112.74235.41144.21154.97166.54178.98192.34
WACC
PV LFCF 128.29122.64117.25112.09107.16
SUM PV LFCF 587.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.41
Free cash flow (t + 1) 200.04
Terminal Value 2,378.56
Present Value of Terminal Value 1,325.22

Intrinsic Value

Enterprise Value 1,912.66
Net Debt 29.78
Equity Value 1,882.88
Shares Outstanding 133.65
Equity Value Per Share 14.09