Discounted Cash Flow (DCF) Analysis Unlevered
Infinera Corporation (INFN)
$7.345
-0.18 (-2.33%)
All numbers are in Millions, Currency in USD
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 | 740.74 | 943.38 | 1,298.86 | 1,355.60 | 1,425.20 | 1,690.80 | 2,005.88 | 2,379.69 | 2,823.15 | 3,349.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -115.92 | -92.41 | -232.17 | -53.82 | -26.11 | -166.11 | -197.07 | -233.79 | -277.36 | -329.04 |
| EBITDA (%) | ||||||||||
| EBIT | -181.92 | -192.90 | -352 | -153.96 | -109.69 | -308.27 | -365.72 | -433.87 | -514.72 | -610.64 |
| EBIT (%) | ||||||||||
| Depreciation | 66 | 100.49 | 119.82 | 100.14 | 83.58 | 142.16 | 168.65 | 200.08 | 237.37 | 281.60 |
| 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 | 263.94 | 229.46 | 109.20 | 298.01 | 190.61 | 350.74 | 416.11 | 493.65 | 585.64 | 694.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 126.15 | 317.12 | 349.65 | 319.43 | 358.95 | 427.14 | 506.74 | 601.18 | 713.21 | 846.12 |
| Account Receivables (%) | ||||||||||
| Inventories | 214.70 | 311.89 | 340.43 | 269.31 | 291.37 | 434.76 | 515.78 | 611.89 | 725.92 | 861.20 |
| Inventories (%) | ||||||||||
| Accounts Payable | 58.12 | 191.19 | 273.40 | 175.76 | 216.40 | 261.44 | 310.16 | 367.95 | 436.52 | 517.87 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -58.04 | -37.69 | -30.20 | -39.01 | -41.38 | -67.42 | -79.98 | -94.89 | -112.57 | -133.55 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 7.345 |
|---|---|
| Beta | 1.213 |
| Diluted Shares Outstanding | 207.38 |
| Cost of Debt | |
| Tax Rate | -7.55 |
| After-tax Cost of Debt | 8.94% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.388 |
| Total Debt | 549.44 |
| Total Equity | 1,523.18 |
| Total Capital | 2,072.62 |
| Debt Weighting | 26.51 |
| Equity Weighting | 73.49 |
| 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 | 740.74 | 943.38 | 1,298.86 | 1,355.60 | 1,425.20 | 1,690.80 | 2,005.88 | 2,379.69 | 2,823.15 | 3,349.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -115.92 | -92.41 | -232.17 | -53.82 | -26.11 | -166.11 | -197.07 | -233.79 | -277.36 | -329.04 |
| EBIT | -181.92 | -192.90 | -352 | -153.96 | -109.69 | -308.27 | -365.72 | -433.87 | -514.72 | -610.64 |
| Tax Rate | 0.73% | 0.30% | -0.77% | -3.01% | -7.55% | -2.06% | -2.06% | -2.06% | -2.06% | -2.06% |
| EBIAT | -180.59 | -192.31 | -354.72 | -158.59 | -117.97 | -314.62 | -373.25 | -442.80 | -525.32 | -623.22 |
| Depreciation | 66 | 100.49 | 119.82 | 100.14 | 83.58 | 142.16 | 168.65 | 200.08 | 237.37 | 281.60 |
| Accounts Receivable | - | -190.96 | -32.53 | 30.22 | -39.53 | -68.19 | -79.60 | -94.43 | -112.03 | -132.91 |
| Inventories | - | -97.18 | -28.54 | 71.12 | -22.06 | -143.39 | -81.02 | -96.12 | -114.03 | -135.28 |
| Accounts Payable | - | 133.06 | 82.21 | -97.64 | 40.64 | 45.03 | 48.72 | 57.80 | 68.57 | 81.35 |
| Capital Expenditure | -58.04 | -37.69 | -30.20 | -39.01 | -41.38 | -67.42 | -79.98 | -94.89 | -112.57 | -133.55 |
| UFCF | -172.64 | -284.60 | -243.96 | -93.75 | -96.71 | -406.43 | -396.48 | -470.36 | -558.02 | -662.01 |
| WACC | ||||||||||
| PV UFCF | -371.95 | -332.06 | -360.52 | -391.42 | -424.97 | |||||
| SUM PV UFCF | -1,880.92 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.27 |
| Free cash flow (t + 1) | -675.25 |
| Terminal Value | -9,288.10 |
| Present Value of Terminal Value | -5,962.42 |
Intrinsic Value
| Enterprise Value | -7,843.33 |
|---|---|
| Net Debt | 358.83 |
| Equity Value | -8,202.16 |
| Shares Outstanding | 207.38 |
| Equity Value Per Share | -39.55 |