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 1,023.021,359.821,643.441,684.182,180.852,648.363,216.093,905.534,742.775,759.48
Revenue (%)
Operating Cash Flow 72.76164.42189.57187.64410.13321.44390.34474.02575.64699.04
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 7.7064.1892.7392.67307.84162.78197.67240.05291.51354

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 1,023.021,359.821,643.441,684.182,180.852,648.363,216.093,905.534,742.775,759.48
Operating Cash Flow 72.76164.42189.57187.64410.13321.44390.34474.02575.64699.04
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 7.7064.1892.7392.67307.84162.78197.67240.05291.51354
WACC
PV LFCF 97.70108.97121.54135.56151.19
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