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 986.79909.92891.82831.28855.58826.39798.20770.97744.67719.27
Revenue (%)
Operating Cash Flow 222.45149.84225.02213.92296.01205.89198.87192.09185.53179.21
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 205.86126.31205.10197.40285.66189.86183.39177.13171.09165.25

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 986.79909.92891.82831.28855.58826.39798.20770.97744.67719.27
Operating Cash Flow 222.45149.84225.02213.92296.01205.89198.87192.09185.53179.21
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 205.86126.31205.10197.40285.66189.86183.39177.13171.09165.25
WACC
PV LFCF 180.43165.61152.01139.53128.07
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