Discounted Cash Flow (DCF) Analysis Levered

Keysight Technologies, Inc. (KEYS)

$163.33

+0.19 (+0.12%)

All numbers are in Millions, Currency in USD

Stock DCF: 115.18 | 163.33 | 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	3,878	4,303	4,221	4,941	5,420	5,905.17	6,433.76	7,009.67	7,637.13	8,320.76
Revenue (%)
Operating Cash Flow	555	998	1,016	1,322	1,144	1,292.49	1,408.19	1,534.24	1,671.58	1,821.21
Operating Cash Flow (%)
Capital Expenditure	-132	-120	-117	-174	-185	-187.78	-204.58	-222.90	-242.85	-264.59
Capital Expenditure (%)
Free Cash Flow	423	878	899	1,148	959	1,104.72	1,203.60	1,311.34	1,428.73	1,556.62

Weighted Average Cost Of Capital

Share price	$ 163.33
Beta	1.079
Diluted Shares Outstanding	187
Cost of Debt
Tax Rate	12.53
After-tax Cost of Debt	3.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.789
Total Debt	2,018
Total Equity	30,542.71
Total Capital	32,560.71
Debt Weighting	6.20
Equity Weighting	93.80
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	3,878	4,303	4,221	4,941	5,420	5,905.17	6,433.76	7,009.67	7,637.13	8,320.76
Operating Cash Flow	555	998	1,016	1,322	1,144	1,292.49	1,408.19	1,534.24	1,671.58	1,821.21
Capital Expenditure	-132	-120	-117	-174	-185	-187.78	-204.58	-222.90	-242.85	-264.59
Free Cash Flow	423	878	899	1,148	959	1,104.72	1,203.60	1,311.34	1,428.73	1,556.62
WACC
PV LFCF						1,018.55	1,023.16	1,027.80	1,032.45	1,037.13
SUM PV LFCF										5,139.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.46
Free cash flow (t + 1)	1,587.75
Terminal Value	24,578.19
Present Value of Terminal Value	16,375.78

Intrinsic Value

Enterprise Value	21,514.88
Net Debt	-24
Equity Value	21,538.88
Shares Outstanding	187
Equity Value Per Share	115.18