Discounted Cash Flow (DCF) Analysis Levered

Proofpoint, Inc. (PFPT)

$175.9

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 154.51 | 175.9 | overvalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 375.50515.29716.99888.191,050.011,360.991,764.082,286.562,963.773,841.56
Revenue (%)
Operating Cash Flow 94.24153.69184.74242.51264.49362.52469.88609.05789.431,023.24
Operating Cash Flow (%)
Capital Expenditure -34.41-46.96-29.52-35.19-72.42-90.51-117.32-152.07-197.11-255.49
Capital Expenditure (%)
Free Cash Flow 59.83106.73155.22207.32192.07272352.56456.98592.32767.76

Weighted Average Cost Of Capital

Share price $ 175.9
Beta 1.199
Diluted Shares Outstanding 57.32
Cost of Debt
Tax Rate -25.15
After-tax Cost of Debt 4.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.624
Total Debt 784.03
Total Equity 10,083.29
Total Capital 10,867.32
Debt Weighting 7.21
Equity Weighting 92.79
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 375.50515.29716.99888.191,050.011,360.991,764.082,286.562,963.773,841.56
Operating Cash Flow 94.24153.69184.74242.51264.49362.52469.88609.05789.431,023.24
Capital Expenditure -34.41-46.96-29.52-35.19-72.42-90.51-117.32-152.07-197.11-255.49
Free Cash Flow 59.83106.73155.22207.32192.07272352.56456.98592.32767.76
WACC
PV LFCF 248.95295.33350.36415.64493.08
SUM PV LFCF 1,803.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.26
Free cash flow (t + 1) 783.11
Terminal Value 10,786.64
Present Value of Terminal Value 6,927.56

Intrinsic Value

Enterprise Value 8,730.92
Net Debt -126.25
Equity Value 8,857.17
Shares Outstanding 57.32
Equity Value Per Share 154.51