Discounted Cash Flow (DCF) Analysis Unlevered

Fate Therapeutics, Inc. (FATE)

$20.91

+0.57 (+2.80%)
All numbers are in Millions, Currency in USD
Stock DCF: -1,715.27 | 20.91 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4.114.7410.6831.4355.85113.47230.56468.46951.851,934.02
Revenue (%)
EBITDA -40.71-63.70-94.20-170.30-206.30-936.96-1,903.78-3,868.21-7,859.66-15,969.73
EBITDA (%)
EBIT -41.68-64.90-96.40-173.39-212.15-957.36-1,945.22-3,952.42-8,030.76-16,317.38
EBIT (%)
Depreciation 0.971.202.193.095.8520.4041.4484.21171.10347.65
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 100.95201.01221.43482.92615.912,589.795,262.1010,691.8521,724.3644,140.87
Total Cash (%)
Account Receivables -0.501.133.325.8911.9724.3249.42100.41204.01
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1.684.205.826.288.6149.81101.22205.66417.87849.04
Accounts Payable (%)
Capital Expenditure -1.72-2.30-7.39-4.93-50.70-60.44-122.81-249.52-507-1,030.15
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.91
Beta 1.574
Diluted Shares Outstanding 82.39
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.934
Total Debt 114.82
Total Equity 1,722.68
Total Capital 1,837.50
Debt Weighting 6.25
Equity Weighting 93.75
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4.114.7410.6831.4355.85113.47230.56468.46951.851,934.02
EBITDA -40.71-63.70-94.20-170.30-206.30-936.96-1,903.78-3,868.21-7,859.66-15,969.73
EBIT -41.68-64.90-96.40-173.39-212.15-957.36-1,945.22-3,952.42-8,030.76-16,317.38
Tax Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
EBIAT -41.68-64.90-96.40-173.39-212.15-957.36-1,945.22-3,952.42-8,030.76-16,317.38
Depreciation 0.971.202.193.095.8520.4041.4484.21171.10347.65
Accounts Receivable ---0.63-2.19-2.58-6.08-12.35-25.10-50.99-103.60
Inventories ----------
Accounts Payable -2.531.620.462.3341.2051.40104.44212.21431.18
Capital Expenditure -1.73-2.30-7.39-4.93-50.70-60.44-122.81-249.52-507-1,030.15
UFCF -42.44-63.47-100.61-176.96-257.25-962.28-1,987.53-4,038.38-8,205.44-16,672.30
WACC
PV UFCF -870.37-1,625.99-2,988.23-5,491.73-10,092.65
SUM PV UFCF -21,068.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.56
Free cash flow (t + 1) -17,005.75
Terminal Value -198,665.26
Present Value of Terminal Value -120,262.93

Intrinsic Value

Enterprise Value -141,331.90
Net Debt -18.77
Equity Value -141,313.14
Shares Outstanding 82.39
Equity Value Per Share -1,715.27