Discounted Cash Flow (DCF) Analysis Levered

Seagate Technology Holdings plc (STX)

$61.64

+0.04 (+0.06%)

All numbers are in Millions, Currency in USD

Stock DCF: 91.30 | 61.64 | undervalue

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	11,184	10,390	10,509	10,681	11,661	11,802.62	11,945.95	12,091.03	12,237.87	12,386.49
Revenue (%)
Operating Cash Flow	2,113	1,761	1,714	1,626	1,657	1,925.83	1,949.22	1,972.89	1,996.85	2,021.10
Operating Cash Flow (%)
Capital Expenditure	-366	-602	-585	-498	-381	-532.61	-539.07	-545.62	-552.25	-558.95
Capital Expenditure (%)
Free Cash Flow	1,747	1,159	1,129	1,128	1,276	1,393.23	1,410.15	1,427.27	1,444.60	1,462.15

Weighted Average Cost Of Capital

Share price	$ 61.64
Beta	1.096
Diluted Shares Outstanding	224
Cost of Debt
Tax Rate	1.79
After-tax Cost of Debt	4.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.552
Total Debt	5,696
Total Equity	13,807.36
Total Capital	19,503.36
Debt Weighting	29.21
Equity Weighting	70.79
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	11,184	10,390	10,509	10,681	11,661	11,802.62	11,945.95	12,091.03	12,237.87	12,386.49
Operating Cash Flow	2,113	1,761	1,714	1,626	1,657	1,925.83	1,949.22	1,972.89	1,996.85	2,021.10
Capital Expenditure	-366	-602	-585	-498	-381	-532.61	-539.07	-545.62	-552.25	-558.95
Free Cash Flow	1,747	1,159	1,129	1,128	1,276	1,393.23	1,410.15	1,427.27	1,444.60	1,462.15
WACC
PV LFCF						1,209.88	1,141.15	1,076.33	1,015.19	957.53
SUM PV LFCF										5,794.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.31
Free cash flow (t + 1)	1,491.39
Terminal Value	28,086.47
Present Value of Terminal Value	19,737.69

Intrinsic Value

Enterprise Value	25,532.51
Net Debt	5,081
Equity Value	20,451.51
Shares Outstanding	224
Equity Value Per Share	91.30