Discounted Cash Flow (DCF) Analysis Unlevered
NetApp, Inc. (NTAP)
$66.81
+1.96 (+3.02%)
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 | 5,919 | 6,146 | 5,412 | 5,744 | 6,318 | 6,444.67 | 6,573.89 | 6,705.69 | 6,840.14 | 6,977.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 601 | 1,523 | 1,192 | 1,243 | 1,289 | 1,276.06 | 1,301.65 | 1,327.74 | 1,354.36 | 1,381.52 |
| EBITDA (%) | ||||||||||
| EBIT | 403 | 1,326 | 999 | 1,036 | 1,095 | 1,059.64 | 1,080.88 | 1,102.55 | 1,124.66 | 1,147.21 |
| EBIT (%) | ||||||||||
| Depreciation | 198 | 197 | 193 | 207 | 194 | 216.43 | 220.76 | 225.19 | 229.71 | 234.31 |
| 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 | 5,391 | 3,899 | 2,882 | 4,596 | 4,156 | 4,557.23 | 4,648.60 | 4,741.80 | 4,836.88 | 4,933.86 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 1,047 | 1,216 | 973 | 945 | 1,230 | 1,177.73 | 1,201.35 | 1,225.44 | 1,250 | 1,275.07 |
| Account Receivables (%) | ||||||||||
| Inventories | 122 | 131 | 145 | 114 | 204 | 155.77 | 158.90 | 162.08 | 165.33 | 168.65 |
| Inventories (%) | ||||||||||
| Accounts Payable | 609 | 542 | 426 | 420 | 607 | 565.82 | 577.17 | 588.74 | 600.54 | 612.58 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -145 | -173 | -124 | -162 | -226 | -179.85 | -183.45 | -187.13 | -190.88 | -194.71 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 66.81 |
|---|---|
| Beta | 1.228 |
| Diluted Shares Outstanding | 229 |
| Cost of Debt | |
| Tax Rate | 14.43 |
| After-tax Cost of Debt | 4.28% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.920 |
| Total Debt | 2,636 |
| Total Equity | 15,299.49 |
| Total Capital | 17,935.49 |
| Debt Weighting | 14.70 |
| Equity Weighting | 85.30 |
| 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 | 5,919 | 6,146 | 5,412 | 5,744 | 6,318 | 6,444.67 | 6,573.89 | 6,705.69 | 6,840.14 | 6,977.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 601 | 1,523 | 1,192 | 1,243 | 1,289 | 1,276.06 | 1,301.65 | 1,327.74 | 1,354.36 | 1,381.52 |
| EBIT | 403 | 1,326 | 999 | 1,036 | 1,095 | 1,059.64 | 1,080.88 | 1,102.55 | 1,124.66 | 1,147.21 |
| Tax Rate | 90.33% | 7.81% | 13.24% | 24.12% | 14.43% | 29.98% | 29.98% | 29.98% | 29.98% | 29.98% |
| EBIAT | 38.99 | 1,222.47 | 866.72 | 786.15 | 937 | 741.91 | 756.79 | 771.96 | 787.44 | 803.23 |
| Depreciation | 198 | 197 | 193 | 207 | 194 | 216.43 | 220.76 | 225.19 | 229.71 | 234.31 |
| Accounts Receivable | - | -169 | 243 | 28 | -285 | 52.26 | -23.61 | -24.09 | -24.57 | -25.06 |
| Inventories | - | -9 | -14 | 31 | -90 | 48.23 | -3.12 | -3.19 | -3.25 | -3.31 |
| Accounts Payable | - | -67 | -116 | -6 | 187 | -41.18 | 11.34 | 11.57 | 11.80 | 12.04 |
| Capital Expenditure | -145 | -173 | -124 | -162 | -226 | -179.85 | -183.45 | -187.13 | -190.88 | -194.71 |
| UFCF | 91.99 | 1,001.47 | 1,048.72 | 884.15 | 717 | 837.81 | 778.71 | 794.32 | 810.25 | 826.49 |
| WACC | ||||||||||
| PV UFCF | 774.03 | 664.66 | 626.37 | 590.29 | 556.29 | |||||
| SUM PV UFCF | 3,211.64 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.24 |
| Free cash flow (t + 1) | 843.02 |
| Terminal Value | 13,509.99 |
| Present Value of Terminal Value | 9,093.18 |
Intrinsic Value
| Enterprise Value | 12,304.83 |
|---|---|
| Net Debt | -1,498 |
| Equity Value | 13,802.83 |
| Shares Outstanding | 229 |
| Equity Value Per Share | 60.27 |