Discounted Cash Flow (DCF) Analysis Unlevered
NortonLifeLock Inc. (NLOK)
$21.66
-0.50 (-2.26%)
All numbers are in Millions, Currency in USD
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 | 2,559 | 2,456 | 2,490 | 2,551 | 2,796 | 2,861.80 | 2,929.15 | 2,998.08 | 3,068.63 | 3,140.85 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 1,344 | 946 | 4,685 | 1,024 | 1,308 | 2,095.48 | 2,144.80 | 2,195.27 | 2,246.93 | 2,299.81 |
| EBITDA (%) | ||||||||||
| EBIT | 704 | 331 | 4,324 | 874 | 1,168 | 1,663.72 | 1,702.87 | 1,742.95 | 1,783.96 | 1,825.95 |
| EBIT (%) | ||||||||||
| Depreciation | 640 | 615 | 361 | 150 | 140 | 431.76 | 441.92 | 452.32 | 462.97 | 473.86 |
| 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 | 2,162 | 2,043 | 2,263 | 951 | 1,891 | 2,080.33 | 2,129.29 | 2,179.40 | 2,230.68 | 2,283.18 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 809 | 838 | 349 | 244 | 182 | 548.46 | 561.37 | 574.58 | 588.10 | 601.94 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 168 | 165 | 87 | 52 | 63 | 120.59 | 123.43 | 126.33 | 129.31 | 132.35 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -142 | -207 | -89 | -6 | -6 | -103.03 | -105.46 | -107.94 | -110.48 | -113.08 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 21.66 |
|---|---|
| Beta | 0.999 |
| Diluted Shares Outstanding | 591 |
| Cost of Debt | |
| Tax Rate | 19.77 |
| After-tax Cost of Debt | 2.64% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.404 |
| Total Debt | 3,829 |
| Total Equity | 12,801.06 |
| Total Capital | 16,630.06 |
| Debt Weighting | 23.02 |
| Equity Weighting | 76.98 |
| 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 | 2,559 | 2,456 | 2,490 | 2,551 | 2,796 | 2,861.80 | 2,929.15 | 2,998.08 | 3,068.63 | 3,140.85 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 1,344 | 946 | 4,685 | 1,024 | 1,308 | 2,095.48 | 2,144.80 | 2,195.27 | 2,246.93 | 2,299.81 |
| EBIT | 704 | 331 | 4,324 | 874 | 1,168 | 1,663.72 | 1,702.87 | 1,742.95 | 1,783.96 | 1,825.95 |
| Tax Rate | -366.39% | 128.97% | -374.60% | 36.47% | 19.77% | -111.16% | -111.16% | -111.16% | -111.16% | -111.16% |
| EBIAT | 3,283.41 | -95.90 | 20,521.84 | 555.27 | 937.09 | 3,513.07 | 3,595.74 | 3,680.36 | 3,766.97 | 3,855.62 |
| Depreciation | 640 | 615 | 361 | 150 | 140 | 431.76 | 441.92 | 452.32 | 462.97 | 473.86 |
| Accounts Receivable | - | -29 | 489 | 105 | 62 | -366.46 | -12.91 | -13.21 | -13.52 | -13.84 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -3 | -78 | -35 | 11 | 57.59 | 2.84 | 2.90 | 2.97 | 3.04 |
| Capital Expenditure | -142 | -207 | -89 | -6 | -6 | -103.03 | -105.46 | -107.94 | -110.48 | -113.08 |
| UFCF | 3,781.41 | 280.10 | 21,204.84 | 769.27 | 1,144.09 | 3,532.93 | 3,922.14 | 4,014.44 | 4,108.91 | 4,205.61 |
| WACC | ||||||||||
| PV UFCF | 3,299.34 | 3,420.63 | 3,269.64 | 3,125.31 | 2,987.36 | |||||
| SUM PV UFCF | 16,102.28 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.08 |
| Free cash flow (t + 1) | 4,289.72 |
| Terminal Value | 84,443.34 |
| Present Value of Terminal Value | 59,982.36 |
Intrinsic Value
| Enterprise Value | 76,084.65 |
|---|---|
| Net Debt | 1,942 |
| Equity Value | 74,142.65 |
| Shares Outstanding | 591 |
| Equity Value Per Share | 125.45 |