Discounted Cash Flow (DCF) Analysis Unlevered

Tandem Diabetes Care, Inc. (TNDM)

$43.425

+1.81 (+4.36%)

All numbers are in Millions, Currency in USD

Stock DCF: -398.85 | 43.425 | 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	183.87	362.31	498.83	702.80	801.22	1,181.04	1,740.93	2,566.23	3,782.78	5,576.04
Revenue (%)
EBITDA	-109.16	-18.45	-13.68	34.06	-68.13	-167.37	-246.72	-363.68	-536.09	-790.22
EBITDA (%)
EBIT	-114.98	-24.53	-24.13	20.21	-86.64	-193.87	-285.78	-421.26	-620.96	-915.33
EBIT (%)
Depreciation	5.82	6.07	10.45	13.84	18.52	26.50	39.06	57.58	84.87	125.10
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	129.03	176.46	484.94	623.81	616.90	901.96	1,329.54	1,959.83	2,888.90	4,258.42
Total Cash (%)
Account Receivables	35.19	46.58	82.20	110.72	114.72	185.54	273.50	403.15	594.26	875.98
Account Receivables (%)
Inventories	19.90	49.07	63.72	68.55	111.12	143.53	211.57	311.86	459.70	677.62
Inventories (%)
Accounts Payable	6.82	17.74	17.80	28.03	55.73	54.62	80.51	118.68	174.94	257.87
Accounts Payable (%)
Capital Expenditure	-2.99	-19.54	-32.29	-23.51	-34.10	-49.82	-73.44	-108.26	-159.58	-235.22
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 43.425
Beta	0.838
Diluted Shares Outstanding	64.15
Cost of Debt
Tax Rate	-1.88
After-tax Cost of Debt	1.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.527
Total Debt	419.88
Total Equity	2,785.54
Total Capital	3,205.42
Debt Weighting	13.10
Equity Weighting	86.90
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	183.87	362.31	498.83	702.80	801.22	1,181.04	1,740.93	2,566.23	3,782.78	5,576.04
EBITDA	-109.16	-18.45	-13.68	34.06	-68.13	-167.37	-246.72	-363.68	-536.09	-790.22
EBIT	-114.98	-24.53	-24.13	20.21	-86.64	-193.87	-285.78	-421.26	-620.96	-915.33
Tax Rate	-0.04%	-0.61%	5.24%	2.11%	-1.88%	0.96%	0.96%	0.96%	0.96%	0.96%
EBIAT	-115.02	-24.67	-22.87	19.79	-88.27	-192	-283.02	-417.20	-614.97	-906.50
Depreciation	5.82	6.07	10.45	13.84	18.52	26.50	39.06	57.58	84.87	125.10
Accounts Receivable	-	-11.39	-35.61	-28.53	-3.99	-70.82	-87.96	-129.65	-191.12	-281.72
Inventories	-	-29.18	-14.65	-4.83	-42.57	-32.41	-68.04	-100.29	-147.84	-217.93
Accounts Payable	-	10.92	0.06	10.23	27.70	-1.11	25.89	38.17	56.26	82.93
Capital Expenditure	-2.99	-19.54	-32.29	-23.51	-34.10	-49.82	-73.44	-108.26	-159.58	-235.22
UFCF	-112.19	-67.79	-94.91	-13.01	-122.71	-319.67	-447.51	-659.66	-972.37	-1,433.34
WACC
PV UFCF						-299.51	-392.85	-542.57	-749.35	-1,034.94
SUM PV UFCF										-3,019.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.73
Free cash flow (t + 1)	-1,462
Terminal Value	-30,909.14
Present Value of Terminal Value	-22,317.95

Intrinsic Value

Enterprise Value	-25,337.19
Net Debt	247.36
Equity Value	-25,584.55
Shares Outstanding	64.15
Equity Value Per Share	-398.85