Discounted Cash Flow (DCF) Analysis Levered

Nektar Therapeutics (NKTR)

$0.75

+0.08 (+11.94%)
All numbers are in Millions, Currency in USD
Stock DCF: -3.36 | 0.75 | 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 1,193.32114.62152.92101.9192.0669.0451.7838.8329.1221.84
Revenue (%)
Operating Cash Flow 718.21-328.68-313.29-412.66-304.01-161.09-120.81-90.61-67.96-50.97
Operating Cash Flow (%)
Capital Expenditure -14.24-26.29-7.26-14.99-5.68-6.87-5.15-3.86-2.90-2.17
Capital Expenditure (%)
Free Cash Flow 703.97-354.97-320.55-427.65-309.68-167.96-125.97-94.47-70.85-53.14

Weighted Average Cost Of Capital

Share price $ 0.75
Beta 0.780
Diluted Shares Outstanding 187.14
Cost of Debt
Tax Rate -0.88
After-tax Cost of Debt 21.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.004
Total Debt 131.50
Total Equity 140.35
Total Capital 271.85
Debt Weighting 48.37
Equity Weighting 51.63
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 1,193.32114.62152.92101.9192.0669.0451.7838.8329.1221.84
Operating Cash Flow 718.21-328.68-313.29-412.66-304.01-161.09-120.81-90.61-67.96-50.97
Capital Expenditure -14.24-26.29-7.26-14.99-5.68-6.87-5.15-3.86-2.90-2.17
Free Cash Flow 703.97-354.97-320.55-427.65-309.68-167.96-125.97-94.47-70.85-53.14
WACC
PV LFCF -146.34-95.63-62.49-40.84-26.69
SUM PV LFCF -371.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.77
Free cash flow (t + 1) -54.20
Terminal Value -424.44
Present Value of Terminal Value -213.15

Intrinsic Value

Enterprise Value -585.13
Net Debt 43.27
Equity Value -628.40
Shares Outstanding 187.14
Equity Value Per Share -3.36