Discounted Cash Flow (DCF) Analysis Levered

Tandem Diabetes Care, Inc. (TNDM)

$41.51

+1.58 (+3.96%)

All numbers are in Millions, Currency in USD

Stock DCF: 36.85 | 41.51 | 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	183.87	362.31	498.83	702.80	801.22	1,181.04	1,740.93	2,566.23	3,782.78	5,576.04
Revenue (%)
Operating Cash Flow	-8.32	41.91	24.67	111.36	50.46	80.62	118.84	175.17	258.22	380.63
Operating Cash Flow (%)
Capital Expenditure	-2.99	-19.54	-32.29	-23.51	-34.10	-49.82	-73.44	-108.26	-159.58	-235.22
Capital Expenditure (%)
Free Cash Flow	-11.31	22.36	-7.63	87.85	16.37	30.80	45.40	66.92	98.64	145.40

Weighted Average Cost Of Capital

Share price	$ 41.51
Beta	0.838
Diluted Shares Outstanding	64.15
Cost of Debt
Tax Rate	-1.88
After-tax Cost of Debt	1.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.476
Total Debt	419.88
Total Equity	2,662.70
Total Capital	3,082.58
Debt Weighting	13.62
Equity Weighting	86.38
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	183.87	362.31	498.83	702.80	801.22	1,181.04	1,740.93	2,566.23	3,782.78	5,576.04
Operating Cash Flow	-8.32	41.91	24.67	111.36	50.46	80.62	118.84	175.17	258.22	380.63
Capital Expenditure	-2.99	-19.54	-32.29	-23.51	-34.10	-49.82	-73.44	-108.26	-159.58	-235.22
Free Cash Flow	-11.31	22.36	-7.63	87.85	16.37	30.80	45.40	66.92	98.64	145.40
WACC
PV LFCF						28.87	39.90	55.15	76.22	105.33
SUM PV LFCF										305.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.66
Free cash flow (t + 1)	148.31
Terminal Value	3,182.62
Present Value of Terminal Value	2,305.56

Intrinsic Value

Enterprise Value	2,611.04
Net Debt	247.36
Equity Value	2,363.68
Shares Outstanding	64.15
Equity Value Per Share	36.85