Discounted Cash Flow (DCF) Analysis Levered

Splunk Inc. (SPLK)

$108.5

+6.50 (+6.37%)

All numbers are in Millions, Currency in USD

Stock DCF: 7.61 | 108.5 | 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	1,270.79	1,803.01	2,358.93	2,229.38	2,673.66	3,256.19	3,965.64	4,829.66	5,881.94	7,163.47
Revenue (%)
Operating Cash Flow	262.90	296.45	-287.64	-190.86	128.05	137.83	167.87	204.44	248.98	303.23
Operating Cash Flow (%)
Capital Expenditure	-20.50	-23.16	-103.71	-51.71	-8.58	-64.70	-78.79	-95.96	-116.87	-142.33
Capital Expenditure (%)
Free Cash Flow	242.40	273.29	-391.34	-242.57	119.47	73.14	89.07	108.48	132.11	160.90

Weighted Average Cost Of Capital

Share price	$ 108.5
Beta	1.317
Diluted Shares Outstanding	161.63
Cost of Debt
Tax Rate	-1.39
After-tax Cost of Debt	-5.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.961
Total Debt	3,137.73
Total Equity	17,536.64
Total Capital	20,674.37
Debt Weighting	15.18
Equity Weighting	84.82
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	1,270.79	1,803.01	2,358.93	2,229.38	2,673.66	3,256.19	3,965.64	4,829.66	5,881.94	7,163.47
Operating Cash Flow	262.90	296.45	-287.64	-190.86	128.05	137.83	167.87	204.44	248.98	303.23
Capital Expenditure	-20.50	-23.16	-103.71	-51.71	-8.58	-64.70	-78.79	-95.96	-116.87	-142.33
Free Cash Flow	242.40	273.29	-391.34	-242.57	119.47	73.14	89.07	108.48	132.11	160.90
WACC
PV LFCF						68.51	78.15	89.15	101.70	116.01
SUM PV LFCF										453.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.76
Free cash flow (t + 1)	164.12
Terminal Value	3,447.81
Present Value of Terminal Value	2,486

Intrinsic Value

Enterprise Value	2,939.51
Net Debt	1,709.04
Equity Value	1,230.47
Shares Outstanding	161.63
Equity Value Per Share	7.61