Discounted Cash Flow (DCF) Analysis Levered

Seagate Technology Holdings plc (STX)

$97.16

+4.11 (+4.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.85 | 97.16 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 10,39010,50910,68111,6617,3846,927.666,499.526,097.845,720.985,367.42
Revenue (%)
Operating Cash Flow 1,7611,7141,6261,6579421,045.37980.77920.15863.29809.93
Operating Cash Flow (%)
Capital Expenditure -602-585-498-381-316-326.57-306.39-287.45-269.69-253.02
Capital Expenditure (%)
Free Cash Flow 1,1591,1291,1281,276626718.80674.38632.70593.60556.91

Weighted Average Cost Of Capital

Share price $ 97.16
Beta 1.059
Diluted Shares Outstanding 207
Cost of Debt
Tax Rate -6.65
After-tax Cost of Debt 5.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.157
Total Debt 5,451
Total Equity 20,112.12
Total Capital 25,563.12
Debt Weighting 21.32
Equity Weighting 78.68
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 10,39010,50910,68111,6617,3846,927.666,499.526,097.845,720.985,367.42
Operating Cash Flow 1,7611,7141,6261,6579421,045.37980.77920.15863.29809.93
Capital Expenditure -602-585-498-381-316-326.57-306.39-287.45-269.69-253.02
Free Cash Flow 1,1591,1291,1281,276626718.80674.38632.70593.60556.91
WACC
PV LFCF 662.92573.59496.31429.43371.57
SUM PV LFCF 2,533.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.43
Free cash flow (t + 1) 579.19
Terminal Value 13,074.29
Present Value of Terminal Value 8,723.10

Intrinsic Value

Enterprise Value 11,256.92
Net Debt 4,665
Equity Value 6,591.92
Shares Outstanding 207
Equity Value Per Share 31.85