Discounted Cash Flow (DCF) Analysis Levered

Lumentum Holdings Inc. (LITE)

$70.02

+1.36 (+1.98%)
All numbers are in Millions, Currency in USD
Stock DCF: 125.77 | 70.02 | 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 1,247.701,565.301,678.601,742.801,712.601,861.532,023.412,199.372,390.642,598.53
Revenue (%)
Operating Cash Flow 247.50330.10524.30738.70459.30526.31572.08621.83675.90734.68
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 154.30164.10438.30653.90368.10402436.96474.96516.26561.15

Weighted Average Cost Of Capital

Share price $ 70.02
Beta 0.936
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 8.384
Total Debt 1,936
Total Equity 5,195.48
Total Capital 7,131.48
Debt Weighting 27.15
Equity Weighting 72.85
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 1,247.701,565.301,678.601,742.801,712.601,861.532,023.412,199.372,390.642,598.53
Operating Cash Flow 247.50330.10524.30738.70459.30526.31572.08621.83675.90734.68
Capital Expenditure -93.20-166-86-84.80-91.20-124.31-135.12-146.87-159.64-173.52
Free Cash Flow 154.30164.10438.30653.90368.10402436.96474.96516.26561.15
WACC
PV LFCF 327.60332.61337.69342.85348.09
SUM PV LFCF 1,935.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.06
Free cash flow (t + 1) 572.38
Terminal Value 11,311.79
Present Value of Terminal Value 8,042.58

Intrinsic Value

Enterprise Value 9,978.29
Net Debt 645.80
Equity Value 9,332.49
Shares Outstanding 74.20
Equity Value Per Share 125.77