Discounted Cash Flow (DCF) Analysis Levered

Western Digital Corporation (WDC)

$37.67

+0.39 (+1.05%)

All numbers are in Millions, Currency in USD

Stock DCF: 35.32 | 37.67 | 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	20,647	16,569	16,736	16,922	18,793	18,484.08	18,180.24	17,881.40	17,587.47	17,298.37
Revenue (%)
Operating Cash Flow	4,205	1,547	824	1,898	1,880	2,064.53	2,030.60	1,997.22	1,964.39	1,932.10
Operating Cash Flow (%)
Capital Expenditure	-835	-876	-647	-1,146	-1,107	-955.99	-940.28	-924.82	-909.62	-894.66
Capital Expenditure (%)
Free Cash Flow	3,370	671	177	752	773	1,108.54	1,090.32	1,072.40	1,054.77	1,037.43

Weighted Average Cost Of Capital

Share price	$ 37.67
Beta	1.675
Diluted Shares Outstanding	316
Cost of Debt
Tax Rate	29.35
After-tax Cost of Debt	2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.398
Total Debt	7,022
Total Equity	11,903.72
Total Capital	18,925.72
Debt Weighting	37.10
Equity Weighting	62.90
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	20,647	16,569	16,736	16,922	18,793	18,484.08	18,180.24	17,881.40	17,587.47	17,298.37
Operating Cash Flow	4,205	1,547	824	1,898	1,880	2,064.53	2,030.60	1,997.22	1,964.39	1,932.10
Capital Expenditure	-835	-876	-647	-1,146	-1,107	-955.99	-940.28	-924.82	-909.62	-894.66
Free Cash Flow	3,370	671	177	752	773	1,108.54	1,090.32	1,072.40	1,054.77	1,037.43
WACC
PV LFCF						1,024.82	931.84	847.30	770.43	700.53
SUM PV LFCF										4,274.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.17
Free cash flow (t + 1)	1,058.18
Terminal Value	17,150.45
Present Value of Terminal Value	11,580.87

Intrinsic Value

Enterprise Value	15,855.78
Net Debt	4,695
Equity Value	11,160.78
Shares Outstanding	316
Equity Value Per Share	35.32