Discounted Cash Flow (DCF) Analysis Levered

Zendesk, Inc. (ZEN)

$76.1

-0.24 (-0.31%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.22 | 76.1 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 430.49598.75816.421,029.561,338.601,778.882,363.963,141.494,174.745,547.84
Revenue (%)
Operating Cash Flow 42.1078.6289.2626.43169.76174.66232.10308.44409.89544.70
Operating Cash Flow (%)
Capital Expenditure -23.92-42.33-46.98-38.52-29.07-86.43-114.86-152.63-202.84-269.55
Capital Expenditure (%)
Free Cash Flow 18.1836.2942.28-12.09140.6988.23117.24155.81207.05275.15

Weighted Average Cost Of Capital

Share price $ 76.1
Beta 0.968
Diluted Shares Outstanding 115.24
Cost of Debt
Tax Rate -3.17
After-tax Cost of Debt 4.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.373
Total Debt 1,203.55
Total Equity 8,769.76
Total Capital 9,973.32
Debt Weighting 12.07
Equity Weighting 87.93
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 430.49598.75816.421,029.561,338.601,778.882,363.963,141.494,174.745,547.84
Operating Cash Flow 42.1078.6289.2626.43169.76174.66232.10308.44409.89544.70
Capital Expenditure -23.92-42.33-46.98-38.52-29.07-86.43-114.86-152.63-202.84-269.55
Free Cash Flow 18.1836.2942.28-12.09140.6988.23117.24155.81207.05275.15
WACC
PV LFCF 81.73100.61123.86152.47187.70
SUM PV LFCF 646.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.95
Free cash flow (t + 1) 280.66
Terminal Value 4,716.90
Present Value of Terminal Value 3,217.68

Intrinsic Value

Enterprise Value 3,864.05
Net Debt 727.45
Equity Value 3,136.60
Shares Outstanding 115.24
Equity Value Per Share 27.22