Discounted Cash Flow (DCF) Analysis Levered

VMware, Inc. (VMW)

$142.48

-7.43 (-4.96%)
All numbers are in Millions, Currency in USD
Stock DCF: 279.71 | 142.48 | undervalue

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 8,97410,81111,76712,85113,35014,765.3816,330.8118,062.2119,977.1822,095.18
Revenue (%)
Operating Cash Flow 3,6633,8724,4094,3574,3005,321.925,886.156,510.217,200.427,963.82
Operating Cash Flow (%)
Capital Expenditure -245-279-329-386-450-427.64-472.98-523.13-578.59-639.93
Capital Expenditure (%)
Free Cash Flow 3,4183,5934,0803,9713,8504,894.285,413.175,987.086,621.847,323.89

Weighted Average Cost Of Capital

Share price $ 142.48
Beta 0.825
Diluted Shares Outstanding 425.86
Cost of Debt
Tax Rate 26.67
After-tax Cost of Debt 3.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.004
Total Debt 11,285
Total Equity 60,676.53
Total Capital 71,961.53
Debt Weighting 15.68
Equity Weighting 84.32
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 8,97410,81111,76712,85113,35014,765.3816,330.8118,062.2119,977.1822,095.18
Operating Cash Flow 3,6633,8724,4094,3574,3005,321.925,886.156,510.217,200.427,963.82
Capital Expenditure -245-279-329-386-450-427.64-472.98-523.13-578.59-639.93
Free Cash Flow 3,4183,5934,0803,9713,8504,894.285,413.175,987.086,621.847,323.89
WACC
PV LFCF 3,221.323,322.933,427.753,535.873,647.40
SUM PV LFCF 24,309.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.22
Free cash flow (t + 1) 7,470.36
Terminal Value 143,110.44
Present Value of Terminal Value 100,993.24

Intrinsic Value

Enterprise Value 125,302.77
Net Debt 6,185
Equity Value 119,117.77
Shares Outstanding 425.86
Equity Value Per Share 279.71