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 909.92891.82831.28855.58914.53916.90919.27921.65924.04926.43
Revenue (%)
Operating Cash Flow 149.84225.02213.92296.01233.28233.88234.49235.09235.70236.31
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 126.31205.10197.40285.61214.93215.49216.05216.61217.17217.73

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 909.92891.82831.28855.58914.53916.90919.27921.65924.04926.43
Operating Cash Flow 149.84225.02213.92296.01233.28233.88234.49235.09235.70236.31
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 126.31205.10197.40285.61214.93215.49216.05216.61217.17217.73
WACC
PV LFCF 201.62189.13177.41166.42156.11
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