Discounted Cash Flow (DCF) Analysis Unlevered

Extreme Networks, Inc. (EXTR)

$19.77

-0.13 (-0.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.01 | 19.77 | 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 983.14995.79948.021,009.421,112.321,148.921,186.721,225.761,266.091,307.74
Revenue (%)
EBITDA 16.3339.60-32.9288.36105.1446.8148.3549.9451.5853.28
EBITDA (%)
EBIT -32.72-13.28-96.7433.0464.98-13.22-13.65-14.10-14.56-15.04
EBIT (%)
Depreciation 49.0652.8763.8255.3240.1660.026264.0466.1568.32
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 121.14169.61193.87246.89194.52210.83217.77224.93232.33239.97
Total Cash (%)
Account Receivables 212.42174.41122.73156.48184.10193.29199.65206.22213.01220.01
Account Receivables (%)
Inventories 63.8763.5962.5932.8949.2362.4364.4866.6068.7971.06
Inventories (%)
Accounts Payable 75.6965.7048.4460.1484.3475.7178.2080.7783.4386.17
Accounts Payable (%)
Capital Expenditure -40.41-22.73-15.27-17.18-15.43-25.49-26.33-27.19-28.09-29.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 19.77
Beta 2.086
Diluted Shares Outstanding 133.49
Cost of Debt
Tax Rate 15.18
After-tax Cost of Debt 3.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.625
Total Debt 351.13
Total Equity 2,639.18
Total Capital 2,990.31
Debt Weighting 11.74
Equity Weighting 88.26
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 983.14995.79948.021,009.421,112.321,148.921,186.721,225.761,266.091,307.74
EBITDA 16.3339.60-32.9288.36105.1446.8148.3549.9451.5853.28
EBIT -32.72-13.28-96.7433.0464.98-13.22-13.65-14.10-14.56-15.04
Tax Rate -0.31%0.08%-5.27%80.99%15.18%18.13%18.13%18.13%18.13%18.13%
EBIAT -32.83-13.27-101.846.2855.12-10.82-11.17-11.54-11.92-12.31
Depreciation 49.0652.8763.8255.3240.1660.026264.0466.1568.32
Accounts Receivable -38.0151.69-33.75-27.62-9.20-6.36-6.57-6.78-7.01
Inventories -0.28129.70-16.35-13.20-2.05-2.12-2.19-2.26
Accounts Payable --9.98-17.2611.7024.20-8.632.492.572.662.74
Capital Expenditure -40.41-22.73-15.27-17.18-15.43-25.49-26.33-27.19-28.09-29.01
UFCF -24.1845.18-17.8752.0860.08-7.3118.5719.1919.8220.47
WACC
PV UFCF -6.5014.7013.5112.4211.41
SUM PV UFCF 45.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.39
Free cash flow (t + 1) 20.88
Terminal Value 200.94
Present Value of Terminal Value 112.06

Intrinsic Value

Enterprise Value 157.61
Net Debt 156.61
Equity Value 1
Shares Outstanding 133.49
Equity Value Per Share 0.01