Discounted Cash Flow (DCF) Analysis Levered
VMware, Inc. (VMW)
$129.26
+4.90 (+3.94%)
All numbers are in Millions, Currency in USD
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 | 7,922 | 8,974 | 10,811 | 11,767 | 12,851 | 14,515.36 | 16,395.27 | 18,518.65 | 20,917.04 | 23,626.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,211 | 3,663 | 3,872 | 4,409 | 4,357 | 5,473.43 | 6,182.30 | 6,982.98 | 7,887.36 | 8,908.87 |
| 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 | 2,948 | 3,418 | 3,593 | 4,080 | 3,971 | 5,054.50 | 5,709.12 | 6,448.52 | 7,283.68 | 8,227.01 |
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 | 7,922 | 8,974 | 10,811 | 11,767 | 12,851 | 14,515.36 | 16,395.27 | 18,518.65 | 20,917.04 | 23,626.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,211 | 3,663 | 3,872 | 4,409 | 4,357 | 5,473.43 | 6,182.30 | 6,982.98 | 7,887.36 | 8,908.87 |
| Capital Expenditure | -263 | -245 | -279 | -329 | -386 | -418.92 | -473.18 | -534.46 | -603.68 | -681.86 |
| Free Cash Flow | 2,948 | 3,418 | 3,593 | 4,080 | 3,971 | 5,054.50 | 5,709.12 | 6,448.52 | 7,283.68 | 8,227.01 |
| WACC | ||||||||||
| PV LFCF | 4,810.61 | 5,171.45 | 5,559.35 | 5,976.35 | 6,424.63 | |||||
| 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 |