Discounted Cash Flow (DCF) Analysis Unlevered

Adobe Inc. (ADBE)

$363.42

-7.29 (-1.97%)

All numbers are in Millions, Currency in USD

Stock DCF: 336.24 | 363.42 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	9,030.01	11,171.30	12,868	15,785	17,606	20,823.76	24,629.61	29,131.05	34,455.18	40,752.38
Revenue (%)
EBITDA	3,229.61	4,098.62	5,049	6,606	6,976	8,044.79	9,515.10	11,254.13	13,310.99	15,743.77
EBITDA (%)
EBIT	2,883.12	3,361.96	4,292	5,818	6,120	6,954.95	8,226.07	9,729.51	11,507.72	13,610.93
EBIT (%)
Depreciation	346.49	736.67	757	788	856	1,089.84	1,289.03	1,524.62	1,803.27	2,132.84
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	3,228.96	4,176.98	5,992	5,798	6,096	7,957.56	9,411.92	11,132.09	13,166.64	15,573.05
Total Cash (%)
Account Receivables	1,315.58	1,534.81	1,398	1,878	2,065	2,615.39	3,093.40	3,658.76	4,327.45	5,118.36
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	186.26	209.50	306	312	379	435.02	514.52	608.56	719.78	851.33
Accounts Payable (%)
Capital Expenditure	-266.58	-394.48	-419	-348	-442	-602	-712.02	-842.16	-996.07	-1,178.12
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 363.42
Beta	1.221
Diluted Shares Outstanding	471
Cost of Debt
Tax Rate	20.84
After-tax Cost of Debt	1.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.313
Total Debt	4,633
Total Equity	171,170.82
Total Capital	175,803.82
Debt Weighting	2.64
Equity Weighting	97.36
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	9,030.01	11,171.30	12,868	15,785	17,606	20,823.76	24,629.61	29,131.05	34,455.18	40,752.38
EBITDA	3,229.61	4,098.62	5,049	6,606	6,976	8,044.79	9,515.10	11,254.13	13,310.99	15,743.77
EBIT	2,883.12	3,361.96	4,292	5,818	6,120	6,954.95	8,226.07	9,729.51	11,507.72	13,610.93
Tax Rate	7.27%	7.90%	-25.96%	15.48%	20.84%	5.11%	5.11%	5.11%	5.11%	5.11%
EBIAT	2,673.53	3,096.25	5,406.11	4,917.51	4,844.66	6,599.81	7,806.02	9,232.69	10,920.10	12,915.91
Depreciation	346.49	736.67	757	788	856	1,089.84	1,289.03	1,524.62	1,803.27	2,132.84
Accounts Receivable	-	-219.23	136.81	-480	-187	-550.39	-478	-565.36	-668.69	-790.91
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	23.24	96.50	6	67	56.02	79.51	94.04	111.22	131.55
Capital Expenditure	-266.58	-394.48	-419	-348	-442	-602	-712.02	-842.16	-996.07	-1,178.12
UFCF	2,753.44	3,242.45	5,977.42	4,883.51	5,138.66	6,593.28	7,984.53	9,443.82	11,169.82	13,211.28
WACC
PV UFCF						6,042.22	6,705.65	7,268.33	7,878.23	8,539.31
SUM PV UFCF										36,433.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.12
Free cash flow (t + 1)	13,475.50
Terminal Value	189,262.65
Present Value of Terminal Value	122,332.86

Intrinsic Value

Enterprise Value	158,766.61
Net Debt	397
Equity Value	158,369.61
Shares Outstanding	471
Equity Value Per Share	336.24