Discounted Cash Flow (DCF) Analysis Unlevered

Infinera Corporation (INFN)

$7.345

-0.18 (-2.33%)
All numbers are in Millions, Currency in USD
Stock DCF: -39.55 | 7.345 | 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 740.74943.381,298.861,355.601,425.201,690.802,005.882,379.692,823.153,349.25
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 66100.49119.82100.1483.58142.16168.65200.08237.37281.60
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 263.94229.46109.20298.01190.61350.74416.11493.65585.64694.78
Total Cash (%)
Account Receivables 126.15317.12349.65319.43358.95427.14506.74601.18713.21846.12
Account Receivables (%)
Inventories 214.70311.89340.43269.31291.37434.76515.78611.89725.92861.20
Inventories (%)
Accounts Payable 58.12191.19273.40175.76216.40261.44310.16367.95436.52517.87
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 740.74943.381,298.861,355.601,425.201,690.802,005.882,379.692,823.153,349.25
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 66100.49119.82100.1483.58142.16168.65200.08237.37281.60
Accounts Receivable --190.96-32.5330.22-39.53-68.19-79.60-94.43-112.03-132.91
Inventories --97.18-28.5471.12-22.06-143.39-81.02-96.12-114.03-135.28
Accounts Payable -133.0682.21-97.6440.6445.0348.7257.8068.5781.35
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