Discounted Cash Flow (DCF) Analysis Levered

Extreme Networks, Inc. (EXTR)

$20.05

-0.08 (-0.40%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.25 | 20.05 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 983.14995.79948.021,009.421,112.321,148.921,186.721,225.761,266.091,307.74
Revenue (%)
Operating Cash Flow 19.04104.9435.88144.54128.1896.7599.93103.22106.61110.12
Operating Cash Flow (%)
Capital Expenditure -40.41-22.73-15.27-17.18-15.43-25.49-26.33-27.19-28.09-29.01
Capital Expenditure (%)
Free Cash Flow -21.3782.2120.62127.36112.7471.2673.6076.0278.5281.11

Weighted Average Cost Of Capital

Share price $ 20.05
Beta 2.086
Diluted Shares Outstanding 133.49
Cost of Debt
Tax Rate 15.18
After-tax Cost of Debt 3.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.445
Total Debt 351.13
Total Equity 2,676.55
Total Capital 3,027.69
Debt Weighting 11.60
Equity Weighting 88.40
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 983.14995.79948.021,009.421,112.321,148.921,186.721,225.761,266.091,307.74
Operating Cash Flow 19.04104.9435.88144.54128.1896.7599.93103.22106.61110.12
Capital Expenditure -40.41-22.73-15.27-17.18-15.43-25.49-26.33-27.19-28.09-29.01
Free Cash Flow -21.3782.2120.62127.36112.7471.2673.6076.0278.5281.11
WACC
PV LFCF 63.4958.4253.7749.4845.53
SUM PV LFCF 270.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.24
Free cash flow (t + 1) 82.73
Terminal Value 807.90
Present Value of Terminal Value 453.55

Intrinsic Value

Enterprise Value 724.23
Net Debt 156.61
Equity Value 567.62
Shares Outstanding 133.49
Equity Value Per Share 4.25