Discounted Cash Flow (DCF) Analysis Unlevered

NETGEAR, Inc. (NTGR)

$19.39

-0.28 (-1.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 19.85 | 19.39 | undervalue

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 1,058.82998.761,255.201,168.07932.47915.90899.63883.64867.94852.52
Revenue (%)
EBITDA 39.5551.5290.1779.57-45.8832.9132.3331.7531.1930.64
EBITDA (%)
EBIT 20.7032.1171.2465.66-55.9519.1718.8318.5018.1717.84
EBIT (%)
Depreciation 18.8519.4118.9313.9110.0713.7413.5013.2613.0212.79
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 274.36195.71353.32271.52227.43222.18218.23214.35210.55206.80
Total Cash (%)
Account Receivables 303.67277.17337.05261.16277.48248.03243.62239.29235.04230.86
Account Receivables (%)
Inventories 243.87235.49172.11315.67299.61218.86214.97211.15207.40203.71
Inventories (%)
Accounts Payable 139.7580.5390.9073.7385.5580.5879.1577.7476.3675
Accounts Payable (%)
Capital Expenditure -12.25-14.23-10.30-9.86-5.76-8.91-8.75-8.60-8.44-8.29
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 19.39
Beta 0.752
Diluted Shares Outstanding 31
Cost of Debt
Tax Rate 15.89
After-tax Cost of Debt 4.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.188
Total Debt 34.09
Total Equity 601.13
Total Capital 635.21
Debt Weighting 5.37
Equity Weighting 94.63
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 1,058.82998.761,255.201,168.07932.47915.90899.63883.64867.94852.52
EBITDA 39.5551.5290.1779.57-45.8832.9132.3331.7531.1930.64
EBIT 20.7032.1171.2465.66-55.9519.1718.8318.5018.1717.84
Tax Rate 121.21%12.78%17.67%24.60%15.89%38.43%38.43%38.43%38.43%38.43%
EBIAT -4.3928.0158.6549.51-47.0611.8011.5911.3911.1910.99
Depreciation 18.8519.4118.9313.9110.0713.7413.5013.2613.0212.79
Accounts Receivable -26.50-59.8875.89-16.3329.464.414.334.254.18
Inventories -8.3863.38-143.5516.0580.753.893.823.753.69
Accounts Payable --59.2210.37-17.1711.82-4.97-1.43-1.41-1.38-1.36
Capital Expenditure -12.25-14.23-10.30-9.86-5.76-8.91-8.75-8.60-8.44-8.29
UFCF 2.218.8581.15-31.29-31.20121.8823.2022.7922.3921.99
WACC
PV UFCF 113.8820.2618.5917.0615.66
SUM PV UFCF 185.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.03
Free cash flow (t + 1) 22.43
Terminal Value 445.92
Present Value of Terminal Value 317.49

Intrinsic Value

Enterprise Value 502.93
Net Debt -112.42
Equity Value 615.34
Shares Outstanding 31
Equity Value Per Share 19.85