Discounted Cash Flow (DCF) Analysis Unlevered

Cadence Design Systems, Inc. (CDNS)

$180.74

-4.29 (-2.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 54.28 | 180.74 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,943.032,138.022,336.322,561.892,809.243,080.483,377.903,704.044,061.674,453.824,883.84
Revenue (%)
EBITDA 456.23518.25621.15634.55695.82763836.67917.451,006.031,103.171,209.68
EBITDA (%)
EBIT 340.71399.53497.80491.27538.71590.72647.75710.30778.87854.08936.54
EBIT (%)
Depreciation 115.52118.72123.35143.28157.11172.28188.92207.16227.16249.09273.14
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 692.54533.30705.21775.15849.99932.061,022.051,120.731,228.931,347.591,477.70
Total Cash (%)
Account Receivables 190.43297.08304.55313.67343.95377.16413.58453.51497.30545.31597.96
Account Receivables (%)
Inventories 33.2128.1655.8046.2450.7055.6060.9766.8673.3180.3988.15
Inventories (%)
Accounts Payable 4.825.485.906.477.097.788.539.3510.2511.2412.33
Accounts Payable (%)
Capital Expenditure -57.90-61.50-74.60-77.28-84.74-92.93-101.90-111.74-122.52-134.35-147.33
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 180.74
Beta 1.099
Diluted Shares Outstanding 278.86
Cost of Debt
Tax Rate 9.43
After-tax Cost of Debt 3.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.737
Total Debt 454.71
Total Equity 50,400.79
Total Capital 50,855.50
Debt Weighting 0.89
Equity Weighting 99.11
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,943.032,138.022,336.322,561.892,809.243,080.483,377.903,704.044,061.674,453.824,883.84
EBITDA 456.23518.25621.15634.55695.82763836.67917.451,006.031,103.171,209.68
EBIT 340.71399.53497.80491.27538.71590.72647.75710.30778.87854.08936.54
Tax Rate 35.22%8.13%-106.48%-9.41%6.65%9.43%-9.41%-9.41%-9.41%-9.41%-9.41%
EBIAT 220.73367.031,027.86537.50502.86535708.70777.13852.16934.441,024.66
Depreciation 115.52118.72123.35143.28157.11172.28188.92207.16227.16249.09273.14
Accounts Receivable --106.66-7.46-9.12-30.28-33.21-36.42-39.93-43.79-48.01-52.65
Inventories -5.05-27.649.56-4.46-4.90-5.37-5.89-6.45-7.08-7.76
Accounts Payable -0.660.410.570.620.680.750.820.900.991.09
Capital Expenditure -57.90-61.50-74.61-77.28-94.81-66.88-101.90-111.74-122.52-134.35-147.33
UFCF 278.35323.301,041.91604.50541.10576.94754.69827.55907.45995.071,091.14
WACC
PV UFCF 657.04541.10530.81638.83644.51650.23656661.83
SUM PV UFCF 3,533.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.69
Free cash flow (t + 1) 1,112.97
Terminal Value 16,636.28
Present Value of Terminal Value 10,967.52

Intrinsic Value

Enterprise Value 14,501.47
Net Debt -634.23
Equity Value 15,135.70
Shares Outstanding 278.86
Equity Value Per Share 54.28