Discounted Cash Flow (DCF) Analysis Levered

NetApp, Inc. (NTAP)

$71.5

+0.29 (+0.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 91.90 | 71.5 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,4915,9196,1465,4125,7445,827.605,912.415,998.466,085.766,174.33
Revenue (%)
Operating Cash Flow 9861,4781,3411,0601,3331,253.391,271.631,290.141,308.911,327.96
Operating Cash Flow (%)
Capital Expenditure -175-145-173-124-162-158.08-160.38-162.72-165.08-167.49
Capital Expenditure (%)
Free Cash Flow 8111,3331,1689361,1711,095.311,111.251,127.421,143.831,160.48

Weighted Average Cost Of Capital

Share price $ 71.5
Beta 1.217
Diluted Shares Outstanding 226
Cost of Debt
Tax Rate 24.12
After-tax Cost of Debt 2.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.622
Total Debt 2,752
Total Equity 16,159
Total Capital 18,911
Debt Weighting 14.55
Equity Weighting 85.45
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,4915,9196,1465,4125,7445,827.605,912.415,998.466,085.766,174.33
Operating Cash Flow 9861,4781,3411,0601,3331,253.391,271.631,290.141,308.911,327.96
Capital Expenditure -175-145-173-124-162-158.08-160.38-162.72-165.08-167.49
Free Cash Flow 8111,3331,1689361,1711,095.311,111.251,127.421,143.831,160.48
WACC
PV LFCF 1,017.38958.74903.49851.42802.35
SUM PV LFCF 4,533.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.66
Free cash flow (t + 1) 1,183.69
Terminal Value 20,913.18
Present Value of Terminal Value 14,459.33

Intrinsic Value

Enterprise Value 18,992.71
Net Debt -1,777
Equity Value 20,769.71
Shares Outstanding 226
Equity Value Per Share 91.90