Discounted Cash Flow (DCF) Analysis Levered

Extreme Networks, Inc. (EXTR)

$17.01

+0.68 (+4.16%)

All numbers are in Millions, Currency in USD

Stock DCF: 11.84 | 17.01 | 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	995.79	948.02	1,009.42	1,112.32	1,312.45	1,410.45	1,515.76	1,628.93	1,750.56	1,881.26
Revenue (%)
Operating Cash Flow	104.94	35.88	144.54	128.18	249.21	166.87	179.33	192.72	207.11	222.57
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	82.21	20.62	127.36	112.74	235.41	144.21	154.97	166.54	178.98	192.34

Weighted Average Cost Of Capital

Share price	$ 17.01
Beta	1.938
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	13.402
Total Debt	264.61
Total Equity	2,273.37
Total Capital	2,537.98
Debt Weighting	10.43
Equity Weighting	89.57
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	995.79	948.02	1,009.42	1,112.32	1,312.45	1,410.45	1,515.76	1,628.93	1,750.56	1,881.26
Operating Cash Flow	104.94	35.88	144.54	128.18	249.21	166.87	179.33	192.72	207.11	222.57
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	82.21	20.62	127.36	112.74	235.41	144.21	154.97	166.54	178.98	192.34
WACC
PV LFCF						128.10	122.30	116.75	111.46	106.41
SUM PV LFCF										585.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.57
Free cash flow (t + 1)	196.19
Terminal Value	1,856.10
Present Value of Terminal Value	1,026.81

Intrinsic Value

Enterprise Value	1,611.82
Net Debt	29.78
Equity Value	1,582.04
Shares Outstanding	133.65
Equity Value Per Share	11.84