Discounted Cash Flow (DCF) Analysis Levered

NortonLifeLock Inc. (NLOK)

$21.66

-0.50 (-2.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.50 | 21.66 | 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	2,559	2,456	2,490	2,551	2,796	2,861.80	2,929.15	2,998.08	3,068.63	3,140.85
Revenue (%)
Operating Cash Flow	950	1,495	-861	706	974	720.76	737.72	755.08	772.85	791.04
Operating Cash Flow (%)
Capital Expenditure	-142	-207	-89	-6	-6	-103.03	-105.46	-107.94	-110.48	-113.08
Capital Expenditure (%)
Free Cash Flow	808	1,288	-950	700	968	617.73	632.26	647.14	662.37	677.96

Weighted Average Cost Of Capital

Share price	$ 21.66
Beta	0.999
Diluted Shares Outstanding	591
Cost of Debt
Tax Rate	19.77
After-tax Cost of Debt	2.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.427
Total Debt	3,829
Total Equity	12,801.06
Total Capital	16,630.06
Debt Weighting	23.02
Equity Weighting	76.98
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	2,559	2,456	2,490	2,551	2,796	2,861.80	2,929.15	2,998.08	3,068.63	3,140.85
Operating Cash Flow	950	1,495	-861	706	974	720.76	737.72	755.08	772.85	791.04
Capital Expenditure	-142	-207	-89	-6	-6	-103.03	-105.46	-107.94	-110.48	-113.08
Free Cash Flow	808	1,288	-950	700	968	617.73	632.26	647.14	662.37	677.96
WACC
PV LFCF						576.83	551.32	526.93	503.62	481.35
SUM PV LFCF										2,640.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.09
Free cash flow (t + 1)	691.52
Terminal Value	13,585.84
Present Value of Terminal Value	9,645.88

Intrinsic Value

Enterprise Value	12,285.93
Net Debt	1,942
Equity Value	10,343.93
Shares Outstanding	591
Equity Value Per Share	17.50