Discounted Cash Flow (DCF) Analysis Unlevered

NetApp, Inc. (NTAP)

$66.81

+1.96 (+3.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 60.27 | 66.81 | overvalue

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 5,9196,1465,4125,7446,3186,444.676,573.896,705.696,840.146,977.29
Revenue (%)
EBITDA 6011,5231,1921,2431,2891,276.061,301.651,327.741,354.361,381.52
EBITDA (%)
EBIT 4031,3269991,0361,0951,059.641,080.881,102.551,124.661,147.21
EBIT (%)
Depreciation 198197193207194216.43220.76225.19229.71234.31
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 5,3913,8992,8824,5964,1564,557.234,648.604,741.804,836.884,933.86
Total Cash (%)
Account Receivables 1,0471,2169739451,2301,177.731,201.351,225.441,2501,275.07
Account Receivables (%)
Inventories 122131145114204155.77158.90162.08165.33168.65
Inventories (%)
Accounts Payable 609542426420607565.82577.17588.74600.54612.58
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 5,9196,1465,4125,7446,3186,444.676,573.896,705.696,840.146,977.29
EBITDA 6011,5231,1921,2431,2891,276.061,301.651,327.741,354.361,381.52
EBIT 4031,3269991,0361,0951,059.641,080.881,102.551,124.661,147.21
Tax Rate 90.33%7.81%13.24%24.12%14.43%29.98%29.98%29.98%29.98%29.98%
EBIAT 38.991,222.47866.72786.15937741.91756.79771.96787.44803.23
Depreciation 198197193207194216.43220.76225.19229.71234.31
Accounts Receivable --16924328-28552.26-23.61-24.09-24.57-25.06
Inventories --9-1431-9048.23-3.12-3.19-3.25-3.31
Accounts Payable --67-116-6187-41.1811.3411.5711.8012.04
Capital Expenditure -145-173-124-162-226-179.85-183.45-187.13-190.88-194.71
UFCF 91.991,001.471,048.72884.15717837.81778.71794.32810.25826.49
WACC
PV UFCF 774.03664.66626.37590.29556.29
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