Discounted Cash Flow (DCF) Analysis Levered
NortonLifeLock Inc. (NLOK)
$21.66
-0.50 (-2.26%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 2,456 | 2,490 | 2,551 | 2,796 | 3,338 | 3,611.91 | 3,908.29 | 4,229 | 4,576.02 | 4,951.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,495 | -861 | 706 | 974 | 757 | 805.33 | 871.41 | 942.92 | 1,020.29 | 1,104.01 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -207 | -89 | -6 | -6 | -6 | -91.25 | -98.74 | -106.84 | -115.61 | -125.10 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,288 | -950 | 700 | 968 | 751 | 714.07 | 772.67 | 836.07 | 904.68 | 978.92 |
Weighted Average Cost Of Capital
| Share price | $ 21.66 |
|---|---|
| Beta | 0.999 |
| Diluted Shares Outstanding | 624 |
| Cost of Debt | |
| Tax Rate | -67.79 |
| After-tax Cost of Debt | -4.08% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.310 |
| Total Debt | 9,819 |
| Total Equity | 13,515.84 |
| Total Capital | 23,334.84 |
| Debt Weighting | 42.08 |
| Equity Weighting | 57.92 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 2,456 | 2,490 | 2,551 | 2,796 | 3,338 | 3,611.91 | 3,908.29 | 4,229 | 4,576.02 | 4,951.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,495 | -861 | 706 | 974 | 757 | 805.33 | 871.41 | 942.92 | 1,020.29 | 1,104.01 |
| Capital Expenditure | -207 | -89 | -6 | -6 | -6 | -91.25 | -98.74 | -106.84 | -115.61 | -125.10 |
| Free Cash Flow | 1,288 | -950 | 700 | 968 | 751 | 714.07 | 772.67 | 836.07 | 904.68 | 978.92 |
| WACC | ||||||||||
| PV LFCF | 688.73 | 718.79 | 750.17 | 782.92 | 817.09 | |||||
| SUM PV LFCF | 3,757.70 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.68 |
| Free cash flow (t + 1) | 998.49 |
| Terminal Value | 59,434.14 |
| Present Value of Terminal Value | 49,609.06 |
Intrinsic Value
| Enterprise Value | 53,366.76 |
|---|---|
| Net Debt | 9,069 |
| Equity Value | 44,297.76 |
| Shares Outstanding | 624 |
| Equity Value Per Share | 70.99 |