Discounted Cash Flow (DCF) Analysis Levered

VMware, Inc. (VMW)

$129.26

+4.90 (+3.94%)
All numbers are in Millions, Currency in USD
Stock DCF: 548.96 | 129.26 | 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 7,9228,97410,81111,76712,85114,515.3616,395.2718,518.6520,917.0423,626.05
Revenue (%)
Operating Cash Flow 3,2113,6633,8724,4094,3575,473.436,182.306,982.987,887.368,908.87
Operating Cash Flow (%)
Capital Expenditure -263-245-279-329-386-418.92-473.18-534.46-603.68-681.86
Capital Expenditure (%)
Free Cash Flow 2,9483,4183,5934,0803,9715,054.505,709.126,448.527,283.688,227.01

Weighted Average Cost Of Capital

Share price $ 129.26
Beta 0.826
Diluted Shares Outstanding 423.24
Cost of Debt
Tax Rate 12.71
After-tax Cost of Debt -1.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.641
Total Debt 12,671
Total Equity 54,708
Total Capital 67,379
Debt Weighting 18.81
Equity Weighting 81.19
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 7,9228,97410,81111,76712,85114,515.3616,395.2718,518.6520,917.0423,626.05
Operating Cash Flow 3,2113,6633,8724,4094,3575,473.436,182.306,982.987,887.368,908.87
Capital Expenditure -263-245-279-329-386-418.92-473.18-534.46-603.68-681.86
Free Cash Flow 2,9483,4183,5934,0803,9715,054.505,709.126,448.527,283.688,227.01
WACC
PV LFCF 4,810.615,171.455,559.355,976.356,424.63
SUM PV LFCF 27,942.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.07
Free cash flow (t + 1) 8,391.55
Terminal Value 273,340.32
Present Value of Terminal Value 213,456.82

Intrinsic Value

Enterprise Value 241,399.21
Net Debt 9,057
Equity Value 232,342.21
Shares Outstanding 423.24
Equity Value Per Share 548.96