Discounted Cash Flow (DCF) Analysis Levered

Pure Storage, Inc. (PSTG)

$29.735

-0.17 (-0.59%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.72 | 29.735 | overvalue

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	1,023.02	1,359.82	1,643.44	1,684.18	2,180.85	2,648.36	3,216.09	3,905.53	4,742.77	5,759.48
Revenue (%)
Operating Cash Flow	72.76	164.42	189.57	187.64	410.13	321.44	390.34	474.02	575.64	699.04
Operating Cash Flow (%)
Capital Expenditure	-65.06	-100.25	-96.85	-94.97	-102.29	-158.66	-192.67	-233.97	-284.13	-345.04
Capital Expenditure (%)
Free Cash Flow	7.70	64.18	92.73	92.67	307.84	162.78	197.67	240.05	291.51	354

Weighted Average Cost Of Capital

Share price	$ 29.735
Beta	1.226
Diluted Shares Outstanding	285.88
Cost of Debt
Tax Rate	-11.49
After-tax Cost of Debt	4.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.407
Total Debt	915.36
Total Equity	8,500.70
Total Capital	9,416.06
Debt Weighting	9.72
Equity Weighting	90.28
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	1,023.02	1,359.82	1,643.44	1,684.18	2,180.85	2,648.36	3,216.09	3,905.53	4,742.77	5,759.48
Operating Cash Flow	72.76	164.42	189.57	187.64	410.13	321.44	390.34	474.02	575.64	699.04
Capital Expenditure	-65.06	-100.25	-96.85	-94.97	-102.29	-158.66	-192.67	-233.97	-284.13	-345.04
Free Cash Flow	7.70	64.18	92.73	92.67	307.84	162.78	197.67	240.05	291.51	354
WACC
PV LFCF						97.70	108.97	121.54	135.56	151.19
SUM PV LFCF										940.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.88
Free cash flow (t + 1)	361.08
Terminal Value	5,248.23
Present Value of Terminal Value	3,429.83

Intrinsic Value

Enterprise Value	4,370.82
Net Debt	449.16
Equity Value	3,921.66
Shares Outstanding	285.88
Equity Value Per Share	13.72