Discounted Cash Flow (DCF) Analysis Levered

NETGEAR, Inc. (NTGR)

$19.24

-0.08 (-0.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.66 | 19.24 | overvalue

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 1,406.921,058.82998.761,255.201,168.071,133.971,100.851,068.711,037.501,007.21
Revenue (%)
Operating Cash Flow 87.52-103.2113.52181.15-4.5826.9126.1325.3724.6223.91
Operating Cash Flow (%)
Capital Expenditure -13.67-12.25-14.23-10.30-9.86-11.84-11.49-11.15-10.83-10.51
Capital Expenditure (%)
Free Cash Flow 73.85-115.46-0.70170.85-14.4415.0814.6414.2113.8013.39

Weighted Average Cost Of Capital

Share price $ 19.24
Beta 0.785
Diluted Shares Outstanding 31
Cost of Debt
Tax Rate 24.60
After-tax Cost of Debt 0.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.387
Total Debt 27.79
Total Equity 596.48
Total Capital 624.27
Debt Weighting 4.45
Equity Weighting 95.55
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 1,406.921,058.82998.761,255.201,168.071,133.971,100.851,068.711,037.501,007.21
Operating Cash Flow 87.52-103.2113.52181.15-4.5826.9126.1325.3724.6223.91
Capital Expenditure -13.67-12.25-14.23-10.30-9.86-11.84-11.49-11.15-10.83-10.51
Free Cash Flow 73.85-115.46-0.70170.85-14.4415.0814.6414.2113.8013.39
WACC
PV LFCF 14.0812.7711.5710.499.51
SUM PV LFCF 58.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.08
Free cash flow (t + 1) 13.66
Terminal Value 268.93
Present Value of Terminal Value 191.03

Intrinsic Value

Enterprise Value 249.46
Net Debt -235.98
Equity Value 485.44
Shares Outstanding 31
Equity Value Per Share 15.66