Discounted Cash Flow (DCF) Analysis Levered

Seagate Technology Holdings plc (STX)

$69.25

-1.64 (-2.31%)
All numbers are in Millions, Currency in USD
Stock DCF: 91.30 | 69.25 | 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 11,18410,39010,50910,68111,66111,802.6211,945.9512,091.0312,237.8712,386.49
Revenue (%)
Operating Cash Flow 2,1131,7611,7141,6261,6571,925.831,949.221,972.891,996.852,021.10
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 1,7471,1591,1291,1281,2761,393.231,410.151,427.271,444.601,462.15

Weighted Average Cost Of Capital

Share price $ 69.25
Beta 1.017
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 8.418
Total Debt 5,696
Total Equity 15,512
Total Capital 21,208
Debt Weighting 26.86
Equity Weighting 73.14
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 11,18410,39010,50910,68111,66111,802.6211,945.9512,091.0312,237.8712,386.49
Operating Cash Flow 2,1131,7611,7141,6261,6571,925.831,949.221,972.891,996.852,021.10
Capital Expenditure -366-602-585-498-381-532.61-539.07-545.62-552.25-558.95
Free Cash Flow 1,7471,1591,1291,1281,2761,393.231,410.151,427.271,444.601,462.15
WACC
PV LFCF 1,298.321,224.571,155.011,089.401,027.52
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