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: 142.29 | 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	375.50	515.29	716.99	888.19	1,050.01	1,360.99	1,764.08	2,286.56	2,963.77	3,841.56
Revenue (%)
Operating Cash Flow	94.24	153.69	184.74	242.51	264.49	362.52	469.88	609.05	789.43	1,023.24
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	59.83	106.73	155.22	207.32	192.07	272	352.56	456.98	592.32	767.76

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	10.233
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	375.50	515.29	716.99	888.19	1,050.01	1,360.99	1,764.08	2,286.56	2,963.77	3,841.56
Operating Cash Flow	94.24	153.69	184.74	242.51	264.49	362.52	469.88	609.05	789.43	1,023.24
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	59.83	106.73	155.22	207.32	192.07	272	352.56	456.98	592.32	767.76
WACC
PV LFCF						247.66	292.28	344.93	407.08	480.42
SUM PV LFCF										1,772.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.83
Free cash flow (t + 1)	783.11
Terminal Value	10,001.41
Present Value of Terminal Value	6,258.30

Intrinsic Value

Enterprise Value	8,030.66
Net Debt	-126.25
Equity Value	8,156.91
Shares Outstanding	57.32
Equity Value Per Share	142.29