Discounted Cash Flow (DCF) Analysis Levered

NetApp, Inc. (NTAP)

$69.71

-0.62 (-0.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 91.35 | 69.71 | 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	5,911	6,146	5,412	5,744	6,318	6,446.89	6,578.42	6,712.63	6,849.57	6,989.31
Revenue (%)
Operating Cash Flow	1,478	1,341	1,060	1,333	1,211	1,402.63	1,431.25	1,460.45	1,490.24	1,520.65
Operating Cash Flow (%)
Capital Expenditure	-145	-173	-124	-162	-226	-179.95	-183.62	-187.37	-191.19	-195.09
Capital Expenditure (%)
Free Cash Flow	1,333	1,168	936	1,171	985	1,222.68	1,247.63	1,273.08	1,299.05	1,325.55

Weighted Average Cost Of Capital

Share price	$ 69.71
Beta	1.180
Diluted Shares Outstanding	229
Cost of Debt
Tax Rate	14.43
After-tax Cost of Debt	2.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.314
Total Debt	2,940
Total Equity	15,963.59
Total Capital	18,903.59
Debt Weighting	15.55
Equity Weighting	84.45
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	5,911	6,146	5,412	5,744	6,318	6,446.89	6,578.42	6,712.63	6,849.57	6,989.31
Operating Cash Flow	1,478	1,341	1,060	1,333	1,211	1,402.63	1,431.25	1,460.45	1,490.24	1,520.65
Capital Expenditure	-145	-173	-124	-162	-226	-179.95	-183.62	-187.37	-191.19	-195.09
Free Cash Flow	1,333	1,168	936	1,171	985	1,222.68	1,247.63	1,273.08	1,299.05	1,325.55
WACC
PV LFCF						1,130.02	1,065.69	1,005.02	947.80	893.84
SUM PV LFCF										5,042.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.20
Free cash flow (t + 1)	1,352.06
Terminal Value	21,807.49
Present Value of Terminal Value	14,705.14

Intrinsic Value

Enterprise Value	19,747.51
Net Debt	-1,172
Equity Value	20,919.51
Shares Outstanding	229
Equity Value Per Share	91.35