Discounted Cash Flow (DCF) Analysis Levered
VMware, Inc. (VMW)
$142.48
-7.43 (-4.96%)
All numbers are in Millions, Currency in USD
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 | 8,974 | 10,811 | 11,767 | 12,851 | 13,350 | 14,765.38 | 16,330.81 | 18,062.21 | 19,977.18 | 22,095.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,663 | 3,872 | 4,409 | 4,357 | 4,300 | 5,321.92 | 5,886.15 | 6,510.21 | 7,200.42 | 7,963.82 |
| 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 | 3,418 | 3,593 | 4,080 | 3,971 | 3,850 | 4,894.28 | 5,413.17 | 5,987.08 | 6,621.84 | 7,323.89 |
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 | 8,974 | 10,811 | 11,767 | 12,851 | 13,350 | 14,765.38 | 16,330.81 | 18,062.21 | 19,977.18 | 22,095.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,663 | 3,872 | 4,409 | 4,357 | 4,300 | 5,321.92 | 5,886.15 | 6,510.21 | 7,200.42 | 7,963.82 |
| Capital Expenditure | -245 | -279 | -329 | -386 | -450 | -427.64 | -472.98 | -523.13 | -578.59 | -639.93 |
| Free Cash Flow | 3,418 | 3,593 | 4,080 | 3,971 | 3,850 | 4,894.28 | 5,413.17 | 5,987.08 | 6,621.84 | 7,323.89 |
| WACC | ||||||||||
| PV LFCF | 3,221.32 | 3,322.93 | 3,427.75 | 3,535.87 | 3,647.40 | |||||
| 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 |