Discounted Cash Flow (DCF) Analysis Unlevered

Western Digital Corporation (WDC)

$37.67

+0.39 (+1.05%)

All numbers are in Millions, Currency in USD

Stock DCF: 125.51 | 37.67 | 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	20,647	16,569	16,736	16,922	18,793	18,484.08	18,180.24	17,881.40	17,587.47	17,298.37
Revenue (%)
EBITDA	4,817	1,994	1,139	2,465	3,320	2,750.56	2,705.35	2,660.88	2,617.14	2,574.12
EBITDA (%)
EBIT	2,761	182	-427	1,253	2,391	1,184.71	1,165.24	1,146.08	1,127.25	1,108.72
EBIT (%)
Depreciation	2,056	1,812	1,566	1,212	929	1,565.85	1,540.11	1,514.79	1,489.89	1,465.40
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	5,005	3,455	3,048	3,370	2,327	3,534.25	3,476.15	3,419.01	3,362.81	3,307.53
Total Cash (%)
Account Receivables	2,197	1,204	2,379	2,257	2,804	2,232.15	2,195.46	2,159.37	2,123.87	2,088.96
Account Receivables (%)
Inventories	2,944	3,283	3,070	3,616	3,638	3,443.34	3,386.74	3,331.07	3,276.31	3,222.46
Inventories (%)
Accounts Payable	2,524	1,898	2,352	2,332	1,902	2,278.53	2,241.07	2,204.24	2,168	2,132.36
Accounts Payable (%)
Capital Expenditure	-835	-876	-647	-1,146	-1,107	-955.99	-940.28	-924.82	-909.62	-894.66
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 37.67
Beta	1.675
Diluted Shares Outstanding	316
Cost of Debt
Tax Rate	29.35
After-tax Cost of Debt	2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.398
Total Debt	7,022
Total Equity	11,903.72
Total Capital	18,925.72
Debt Weighting	37.10
Equity Weighting	62.90
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	20,647	16,569	16,736	16,922	18,793	18,484.08	18,180.24	17,881.40	17,587.47	17,298.37
EBITDA	4,817	1,994	1,139	2,465	3,320	2,750.56	2,705.35	2,660.88	2,617.14	2,574.12
EBIT	2,761	182	-427	1,253	2,391	1,184.71	1,165.24	1,146.08	1,127.25	1,108.72
Tax Rate	67.63%	-162.72%	-443.48%	11.43%	29.35%	-99.56%	-99.56%	-99.56%	-99.56%	-99.56%
EBIAT	893.85	478.15	-2,320.65	1,109.72	1,689.35	2,364.19	2,325.33	2,287.10	2,249.51	2,212.53
Depreciation	2,056	1,812	1,566	1,212	929	1,565.85	1,540.11	1,514.79	1,489.89	1,465.40
Accounts Receivable	-	993	-1,175	122	-547	571.85	36.69	36.09	35.50	34.91
Inventories	-	-339	213	-546	-22	194.66	56.60	55.67	54.76	53.86
Accounts Payable	-	-626	454	-20	-430	376.53	-37.45	-36.84	-36.23	-35.64
Capital Expenditure	-835	-876	-647	-1,146	-1,107	-955.99	-940.28	-924.82	-909.62	-894.66
UFCF	2,114.85	1,442.15	-1,909.65	731.72	512.35	4,117.08	2,981	2,932	2,883.80	2,836.40
WACC
PV UFCF						3,806.12	2,547.70	2,316.56	2,106.39	1,915.28
SUM PV UFCF										12,692.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.17
Free cash flow (t + 1)	2,893.13
Terminal Value	46,890.21
Present Value of Terminal Value	31,662.70

Intrinsic Value

Enterprise Value	44,354.75
Net Debt	4,695
Equity Value	39,659.75
Shares Outstanding	316
Equity Value Per Share	125.51