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 | 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 |