Discounted Cash Flow (DCF) Analysis Levered

NetApp, Inc. (NTAP)

$62.78

-2.46 (-3.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 95.48 | 62.78 | 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 5,9196,1465,4125,7446,3186,444.676,573.896,705.696,840.146,977.29
Revenue (%)
Operating Cash Flow 1,4781,3411,0601,3331,2111,401.721,429.821,458.491,487.731,517.56
Operating Cash Flow (%)
Capital Expenditure -145-173-124-162-226-179.85-183.45-187.13-190.88-194.71
Capital Expenditure (%)
Free Cash Flow 1,3331,1689361,1719851,221.871,246.371,271.361,296.851,322.85

Weighted Average Cost Of Capital

Share price $ 62.78
Beta 1.228
Diluted Shares Outstanding 229
Cost of Debt
Tax Rate 14.43
After-tax Cost of Debt 4.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.684
Total Debt 2,636
Total Equity 14,376.62
Total Capital 17,012.62
Debt Weighting 15.49
Equity Weighting 84.51
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 5,9196,1465,4125,7446,3186,444.676,573.896,705.696,840.146,977.29
Operating Cash Flow 1,4781,3411,0601,3331,2111,401.721,429.821,458.491,487.731,517.56
Capital Expenditure -145-173-124-162-226-179.85-183.45-187.13-190.88-194.71
Free Cash Flow 1,3331,1689361,1719851,221.871,246.371,271.361,296.851,322.85
WACC
PV LFCF 1,131.361,068.561,009.24953.22900.31
SUM PV LFCF 5,062.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.00
Free cash flow (t + 1) 1,349.30
Terminal Value 22,488.41
Present Value of Terminal Value 15,305.23

Intrinsic Value

Enterprise Value 20,367.92
Net Debt -1,498
Equity Value 21,865.92
Shares Outstanding 229
Equity Value Per Share 95.48