Discounted Cash Flow (DCF) Analysis Unlevered

Adobe Inc. (ADBE)

$ 662.1
-6.22 (-0.93%)
Stock DCF: 1,184.95 | 662.1 | undervalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 5,854.437,301.509,030.0111,171.3012,86815,676.1819,097.1923,264.7728,341.8434,526.87
Revenue (%)
EBITDA 1,837.112,538.042,974.224,095.675,0495,485.946,683.138,141.599,918.3312,082.80
EBITDA (%)
EBIT 1,505.582,212.042,627.733,3594,2924,656.925,673.196,911.268,419.5010,256.88
EBIT (%)
Depreciation 331.54326346.49736.67757829.021,009.941,230.331,498.831,825.92
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 4,7625,8203,228.964,176.985,9928,802.5910,723.5813,063.7815,914.6919,387.75
Total Cash (%)
Account Receivables 8331,2181,315.581,598.711,3982,215.172,698.593,287.504,004.934,878.92
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 88114186.26209.50306294.10358.28436.47531.72647.75
Accounts Payable (%)
Capital Expenditure -203.81-178.12-266.58-394.48-419-490.98-598.13-728.66-887.68-1,081.40
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 662.1
Beta 1.046
Diluted Shares Outstanding 485
Cost of Debt
Tax Rate -25.96
After-tax Cost of Debt 2.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.420
Total Debt 4,708
Total Equity 321,118.50
Total Capital 325,826.50
Debt Weighting 1.44
Equity Weighting 98.56
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 5,854.437,301.509,030.0111,171.3012,86815,676.1819,097.1923,264.7728,341.8434,526.87
EBITDA 1,837.112,538.042,974.224,095.675,0495,485.946,683.138,141.599,918.3312,082.80
EBIT 1,505.582,212.042,627.733,3594,2924,656.925,673.196,911.268,419.5010,256.88
Tax Rate 18.56%20.76%7.27%7.90%-25.96%5.71%5.71%5.71%5.71%5.71%
EBIAT 1,226.151,752.912,436.703,093.535,406.114,391.195,349.486,516.897,939.079,671.61
Depreciation 331.54326346.49736.67757829.021,009.941,230.331,498.831,825.92
Accounts Receivable --385-97.58-283.13200.71-817.17-483.42-588.91-717.43-874
Inventories ----------
Accounts Payable -2672.2623.2496.50-11.9064.1878.1995.25116.04
Capital Expenditure -203.81-178.12-266.58-394.48-419-490.98-598.13-728.66-887.68-1,081.40
UFCF 1,353.881,541.792,491.303,175.836,041.323,900.155,342.046,507.847,928.049,658.18
WACC
PV UFCF 3,666.934,722.275,408.816,195.167,095.84
SUM PV UFCF 27,089.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.36
Free cash flow (t + 1) 10,141.09
Terminal Value 745,668.12
Present Value of Terminal Value 547,840.25

Intrinsic Value

Enterprise Value 574,929.26
Net Debt 230
Equity Value 574,699.26
Shares Outstanding 485
Equity Value Per Share 1,184.95