Discounted Cash Flow (DCF) Analysis Levered

Workday, Inc. (WDAY)

$151.24

+0.75 (+0.50%)
All numbers are in Millions, Currency in USD
Stock DCF: 134.65 | 151.24 | 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 2,143.052,822.183,627.214,3185,138.806,401.257,973.859,932.8012,37315,412.69
Revenue (%)
Operating Cash Flow 465.73606.66864.601,268.441,650.701,645.922,050.282,553.973,181.413,962.99
Operating Cash Flow (%)
Capital Expenditure -124.81-181.18-99.31-256.33-272.27-335.64-418.09-520.81-648.75-808.13
Capital Expenditure (%)
Free Cash Flow 340.92425.48765.291,012.111,378.431,310.291,632.192,033.172,532.663,154.86

Weighted Average Cost Of Capital

Share price $ 151.24
Beta 1.347
Diluted Shares Outstanding 254.03
Cost of Debt
Tax Rate -81.52
After-tax Cost of Debt 0.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.056
Total Debt 2,102.76
Total Equity 38,419.80
Total Capital 40,522.56
Debt Weighting 5.19
Equity Weighting 94.81
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 2,143.052,822.183,627.214,3185,138.806,401.257,973.859,932.8012,37315,412.69
Operating Cash Flow 465.73606.66864.601,268.441,650.701,645.922,050.282,553.973,181.413,962.99
Capital Expenditure -124.81-181.18-99.31-256.33-272.27-335.64-418.09-520.81-648.75-808.13
Free Cash Flow 340.92425.48765.291,012.111,378.431,310.291,632.192,033.172,532.663,154.86
WACC
PV LFCF 1,195.841,359.521,545.601,757.151,997.66
SUM PV LFCF 7,855.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.57
Free cash flow (t + 1) 3,217.96
Terminal Value 42,509.32
Present Value of Terminal Value 26,916.95

Intrinsic Value

Enterprise Value 34,772.73
Net Debt 568.48
Equity Value 34,204.25
Shares Outstanding 254.03
Equity Value Per Share 134.65