Discounted Cash Flow (DCF) Analysis Levered

NetScout Systems, Inc. (NTCT)

$30.73

-0.26 (-0.84%)

All numbers are in Millions, Currency in USD

Stock DCF: 53.18 | 30.73 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	909.92	891.82	831.28	855.58	914.53	916.90	919.27	921.65	924.04	926.43
Revenue (%)
Operating Cash Flow	149.84	225.02	213.92	296.01	233.28	233.88	234.49	235.09	235.70	236.31
Operating Cash Flow (%)
Capital Expenditure	-23.53	-19.92	-16.52	-10.40	-18.34	-18.39	-18.44	-18.49	-18.53	-18.58
Capital Expenditure (%)
Free Cash Flow	126.31	205.10	197.40	285.61	214.93	215.49	216.05	216.61	217.17	217.73

Weighted Average Cost Of Capital

Share price	$ 30.73
Beta	0.701
Diluted Shares Outstanding	75.08
Cost of Debt
Tax Rate	12.81
After-tax Cost of Debt	5.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.008
Total Debt	160.47
Total Equity	2,307.33
Total Capital	2,467.80
Debt Weighting	6.50
Equity Weighting	93.50
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	909.92	891.82	831.28	855.58	914.53	916.90	919.27	921.65	924.04	926.43
Operating Cash Flow	149.84	225.02	213.92	296.01	233.28	233.88	234.49	235.09	235.70	236.31
Capital Expenditure	-23.53	-19.92	-16.52	-10.40	-18.34	-18.39	-18.44	-18.49	-18.53	-18.58
Free Cash Flow	126.31	205.10	197.40	285.61	214.93	215.49	216.05	216.61	217.17	217.73
WACC
PV LFCF						201.62	189.13	177.41	166.42	156.11
SUM PV LFCF										890.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.88
Free cash flow (t + 1)	222.09
Terminal Value	4,550.95
Present Value of Terminal Value	3,263.02

Intrinsic Value

Enterprise Value	4,153.72
Net Debt	160.47
Equity Value	3,993.25
Shares Outstanding	75.08
Equity Value Per Share	53.18