Discounted Cash Flow (DCF) Analysis Levered

Lumentum Holdings Inc. (LITE)

$51.575

+0.33 (+0.63%)

All numbers are in Millions, Currency in USD

Stock DCF: 127.71 | 51.575 | undervalue

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	1,247.70	1,565.30	1,678.60	1,742.80	1,712.60	1,861.53	2,023.41	2,199.37	2,390.64	2,598.53
Revenue (%)
Operating Cash Flow	247.50	330.10	524.30	738.70	459.30	526.31	572.08	621.83	675.90	734.68
Operating Cash Flow (%)
Capital Expenditure	-93.20	-166	-86	-84.80	-91.20	-124.31	-135.12	-146.87	-159.64	-173.52
Capital Expenditure (%)
Free Cash Flow	154.30	164.10	438.30	653.90	368.10	402	436.96	474.96	516.26	561.15

Weighted Average Cost Of Capital

Share price	$ 51.575
Beta	1.099
Diluted Shares Outstanding	74.20
Cost of Debt
Tax Rate	15.40
After-tax Cost of Debt	3.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.749
Total Debt	1,936
Total Equity	3,826.86
Total Capital	5,762.86
Debt Weighting	33.59
Equity Weighting	66.41
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	1,247.70	1,565.30	1,678.60	1,742.80	1,712.60	1,861.53	2,023.41	2,199.37	2,390.64	2,598.53
Operating Cash Flow	247.50	330.10	524.30	738.70	459.30	526.31	572.08	621.83	675.90	734.68
Capital Expenditure	-93.20	-166	-86	-84.80	-91.20	-124.31	-135.12	-146.87	-159.64	-173.52
Free Cash Flow	154.30	164.10	438.30	653.90	368.10	402	436.96	474.96	516.26	561.15
WACC
PV LFCF						375.73	381.73	387.81	394	400.28
SUM PV LFCF										1,939.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.99
Free cash flow (t + 1)	572.38
Terminal Value	11,470.47
Present Value of Terminal Value	8,182.11

Intrinsic Value

Enterprise Value	10,121.67
Net Debt	645.80
Equity Value	9,475.87
Shares Outstanding	74.20
Equity Value Per Share	127.71