Discounted Cash Flow (DCF) Analysis Levered

NetScout Systems, Inc. (NTCT)

$35.295

-0.80 (-2.20%)

All numbers are in Millions, Currency in USD

Stock DCF: 68.15 | 35.295 | 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	986.79	909.92	891.82	831.28	855.58	826.39	798.20	770.97	744.67	719.27
Revenue (%)
Operating Cash Flow	222.45	149.84	225.02	213.92	296.01	205.89	198.87	192.09	185.53	179.21
Operating Cash Flow (%)
Capital Expenditure	-16.59	-23.53	-19.92	-16.52	-10.35	-16.03	-15.48	-14.95	-14.44	-13.95
Capital Expenditure (%)
Free Cash Flow	205.86	126.31	205.10	197.40	285.66	189.86	183.39	177.13	171.09	165.25

Weighted Average Cost Of Capital

Share price	$ 35.295
Beta	0.664
Diluted Shares Outstanding	73.82
Cost of Debt
Tax Rate	15.95
After-tax Cost of Debt	1.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.878
Total Debt	415.34
Total Equity	2,605.55
Total Capital	3,020.89
Debt Weighting	13.75
Equity Weighting	86.25
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	986.79	909.92	891.82	831.28	855.58	826.39	798.20	770.97	744.67	719.27
Operating Cash Flow	222.45	149.84	225.02	213.92	296.01	205.89	198.87	192.09	185.53	179.21
Capital Expenditure	-16.59	-23.53	-19.92	-16.52	-10.35	-16.03	-15.48	-14.95	-14.44	-13.95
Free Cash Flow	205.86	126.31	205.10	197.40	285.66	189.86	183.39	177.13	171.09	165.25
WACC
PV LFCF						180.43	165.61	152.01	139.53	128.07
SUM PV LFCF										765.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.23
Free cash flow (t + 1)	168.56
Terminal Value	5,218.55
Present Value of Terminal Value	4,044.38

Intrinsic Value

Enterprise Value	4,810.04
Net Debt	-220.82
Equity Value	5,030.86
Shares Outstanding	73.82
Equity Value Per Share	68.15