Discounted Cash Flow (DCF) Analysis Unlevered

NETGEAR, Inc. (NTGR)

$20.17

+0.44 (+2.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 34.09 | 20.17 | undervalue

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 1,406.921,058.82998.761,255.201,168.071,133.971,100.851,068.711,037.501,007.21
Revenue (%)
EBITDA 118.9239.5551.5290.1779.5771.086966.9965.0363.13
EBITDA (%)
EBIT 92.8320.7032.1171.2465.6652.3150.7849.3047.8646.46
EBIT (%)
Depreciation 26.0918.8519.4118.9313.9118.7718.2217.6917.1716.67
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 329.80274.36195.71353.32271.52272.93264.96257.22249.71242.42
Total Cash (%)
Account Receivables 412.80303.67277.17337.05261.16306.13297.19288.51280.09271.91
Account Receivables (%)
Inventories 245.89243.87235.49172.11315.67237.73230.79224.05217.51211.16
Inventories (%)
Accounts Payable 111.91139.7580.5390.9073.739794.1791.4288.7586.16
Accounts Payable (%)
Capital Expenditure -13.67-12.25-14.23-10.30-9.86-11.84-11.49-11.15-10.83-10.51
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.17
Beta 0.785
Diluted Shares Outstanding 31
Cost of Debt
Tax Rate 24.60
After-tax Cost of Debt 0.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.235
Total Debt 27.79
Total Equity 625.31
Total Capital 653.10
Debt Weighting 4.25
Equity Weighting 95.75
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 1,406.921,058.82998.761,255.201,168.071,133.971,100.851,068.711,037.501,007.21
EBITDA 118.9239.5551.5290.1779.5771.086966.9965.0363.13
EBIT 92.8320.7032.1171.2465.6652.3150.7849.3047.8646.46
Tax Rate 78.57%121.21%12.78%17.67%24.60%50.97%50.97%50.97%50.97%50.97%
EBIAT 19.89-4.3928.0158.6549.5125.6524.9024.1723.4722.78
Depreciation 26.0918.8519.4118.9313.9118.7718.2217.6917.1716.67
Accounts Receivable -109.1326.50-59.8875.89-44.978.948.688.428.18
Inventories -2.028.3863.38-143.5577.936.946.746.546.35
Accounts Payable -27.83-59.2210.37-17.1723.27-2.83-2.75-2.67-2.59
Capital Expenditure -13.67-12.25-14.23-10.30-9.86-11.84-11.49-11.15-10.83-10.51
UFCF 32.31141.208.8581.15-31.2988.8244.6843.3842.1140.88
WACC
PV UFCF 83.0439.0635.4632.1929.22
SUM PV UFCF 218.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.95
Free cash flow (t + 1) 41.70
Terminal Value 842.38
Present Value of Terminal Value 602.01

Intrinsic Value

Enterprise Value 820.97
Net Debt -235.98
Equity Value 1,056.96
Shares Outstanding 31
Equity Value Per Share 34.09