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 9,030.0111,171.3012,86815,78517,60620,823.7624,629.6129,131.0534,455.1840,752.38
Revenue (%)
EBITDA 3,229.614,098.625,0496,6066,9768,044.799,515.1011,254.1313,310.9915,743.77
EBITDA (%)
EBIT 2,883.123,361.964,2925,8186,1206,954.958,226.079,729.5111,507.7213,610.93
EBIT (%)
Depreciation 346.49736.677577888561,089.841,289.031,524.621,803.272,132.84
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 3,228.964,176.985,9925,7986,0967,957.569,411.9211,132.0913,166.6415,573.05
Total Cash (%)
Account Receivables 1,315.581,534.811,3981,8782,0652,615.393,093.403,658.764,327.455,118.36
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 186.26209.50306312379435.02514.52608.56719.78851.33
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 9,030.0111,171.3012,86815,78517,60620,823.7624,629.6129,131.0534,455.1840,752.38
EBITDA 3,229.614,098.625,0496,6066,9768,044.799,515.1011,254.1313,310.9915,743.77
EBIT 2,883.123,361.964,2925,8186,1206,954.958,226.079,729.5111,507.7213,610.93
Tax Rate 7.27%7.90%-25.96%15.48%20.84%5.11%5.11%5.11%5.11%5.11%
EBIAT 2,673.533,096.255,406.114,917.514,844.666,599.817,806.029,232.6910,920.1012,915.91
Depreciation 346.49736.677577888561,089.841,289.031,524.621,803.272,132.84
Accounts Receivable --219.23136.81-480-187-550.39-478-565.36-668.69-790.91
Inventories ----------
Accounts Payable -23.2496.5066756.0279.5194.04111.22131.55
Capital Expenditure -266.58-394.48-419-348-442-602-712.02-842.16-996.07-1,178.12
UFCF 2,753.443,242.455,977.424,883.515,138.666,593.287,984.539,443.8211,169.8213,211.28
WACC
PV UFCF 6,042.226,705.657,268.337,878.238,539.31
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