Discounted Cash Flow (DCF) Analysis Levered

Pure Storage, Inc. (PSTG)

$55.33

+2.68 (+5.09%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.19 | 55.33 | overvalue

Free Cash Flow

Year
A/P
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Actual
2025
Projected
2026
Projected
2027
Projected
2028
Projected
2029
Projected
Revenue 1,643.441,684.182,180.852,753.432,830.623,262.493,760.244,333.944,995.165,757.27
Revenue (%)
Operating Cash Flow 189.57187.64410.13767.23677.72608.71701.58808.62931.991,074.19
Operating Cash Flow (%)
Capital Expenditure -96.85-94.97-102.29-158.14-195.16-188.31-217.04-250.16-288.32-332.31
Capital Expenditure (%)
Free Cash Flow 92.7392.67307.84609.10482.56420.40484.54558.46643.67741.87

Weighted Average Cost Of Capital

Share price $ 55.33
Beta 1.108
Diluted Shares Outstanding 332.57
Cost of Debt
Tax Rate 32.32
After-tax Cost of Debt 2.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.389
Total Debt 750.69
Total Equity 18,400.99
Total Capital 19,151.67
Debt Weighting 3.92
Equity Weighting 96.08
Wacc

Build Up Free Cash Flow

Year
A/P
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Actual
2025
Projected
2026
Projected
2027
Projected
2028
Projected
2029
Projected
Revenue 1,643.441,684.182,180.852,753.432,830.623,262.493,760.244,333.944,995.165,757.27
Operating Cash Flow 189.57187.64410.13767.23677.72608.71701.58808.62931.991,074.19
Capital Expenditure -96.85-94.97-102.29-158.14-195.16-188.31-217.04-250.16-288.32-332.31
Free Cash Flow 92.7392.67307.84609.10482.56420.40484.54558.46643.67741.87
WACC
PV LFCF 385.23406.86429.70453.82479.30
SUM PV LFCF 2,154.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.13
Free cash flow (t + 1) 771.55
Terminal Value 15,039.91
Present Value of Terminal Value 9,716.83

Intrinsic Value

Enterprise Value 11,871.73
Net Debt 169.83
Equity Value 11,701.90
Shares Outstanding 332.57
Equity Value Per Share 35.19