DCF Tool

FFIV

F5 Inc – Custom Computer Programming Services
F5, Inc. is an American technology company specializing in application security, multi-cloud management, online fraud prevention, application delivery networking (ADN), application availability & performance, network security, and access & authorization. F5 originally offered application delivery controller (ADC) technology, but expanded into application layer, automation, multi-cloud, and security services. As ransomware, data leaks, DDoS, and other attacks on businesses of all sizes are arising, companies such as F5 have continued to reinvent themselves.
Analysis Results
Intrinsic Value $155.88
Latest Price $148.07
Relative Value 5% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 9.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 579 529
2024 634 530
2025 694 531
2026 760 531
2027 832 532
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11500 million. This corresponds to a present value of 6760 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2650 million. Adding in the terminal value gives a total present value of 9410 million.

There are presently 60.4 million outstanding shares, so the intrinsic value per share is 155.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,912,224,000
Current Cash 884,566,000
Current Liabilities 1,839,951,000
Current Debt 349,772,000
Non-Cash Working Capital (NCWC) -462,521,000
Change in NCWC 209,238,000
EBIT 411,701,000
Tax Provision 63,233,000
Depreciation and Amortization 115,609,000
Capital Expenditure -33,624,000
Unlevered Free Cash Flow 635,374,539
Current Assets 1,611,100,000
Current Cash 910,607,000
Current Liabilities 1,391,527,000
Current Debt 19,275,000
Non-Cash Working Capital (NCWC) -671,759,000
Change in NCWC 13,658,000
EBIT 394,025,000
Tax Provision 55,696,000
Depreciation and Amortization 115,424,000
Capital Expenditure -30,651,000
Unlevered Free Cash Flow 435,739,748
Current Assets 1,793,476,000
Current Cash 1,209,889,000
Current Liabilities 1,288,279,000
Current Debt 19,275,000
Non-Cash Working Capital (NCWC) -685,417,000
Change in NCWC -119,195,000
EBIT 400,067,000
Tax Provision 88,956,000
Depreciation and Amortization 95,857,000
Capital Expenditure -59,940,000
Unlevered Free Cash Flow 227,009,410
Current Assets 1,511,586,000
Current Cash 972,282,000
Current Liabilities 1,105,526,000
Current Debt 0
Non-Cash Working Capital (NCWC) -566,222,000
Change in NCWC 9,965,000
EBIT 518,463,000
Tax Provision 113,377,000
Depreciation and Amortization 68,507,000
Capital Expenditure -103,542,000
Unlevered Free Cash Flow 384,761,352
Current Assets 1,417,658,000
Current Cash 1,039,412,000
Current Liabilities 954,433,000
Current Debt 0
Non-Cash Working Capital (NCWC) -576,187,000
Change in NCWC -83,966,000
EBIT 609,325,000
Tax Provision 150,071,000
Depreciation and Amortization 59,491,000
Capital Expenditure -53,465,000
Unlevered Free Cash Flow 379,930,759
Current Assets 1,459,308,000
Current Cash 1,016,928,000
Current Liabilities 934,601,000
Current Debt 0
Non-Cash Working Capital (NCWC) -492,221,000
Change in NCWC -54,389,000
EBIT 577,065,000
Tax Provision 154,756,000
Depreciation and Amortization 61,148,000
Capital Expenditure -42,681,000
Unlevered Free Cash Flow 385,970,744
Current Assets 1,288,801,000
Current Cash 882,395,000
Current Liabilities 844,238,000
Current Debt 0
Non-Cash Working Capital (NCWC) -437,832,000
Change in NCWC -96,507,000
EBIT 556,428,000
Tax Provision 184,036,000
Depreciation and Amortization 56,776,000
Capital Expenditure -68,238,000
Unlevered Free Cash Flow 262,235,214
Current Assets 1,188,140,000
Current Cash 774,342,000
Current Liabilities 755,123,000
Current Debt 0
Non-Cash Working Capital (NCWC) -341,325,000
Change in NCWC -57,813,000
EBIT 552,899,000
Tax Provision 196,330,000
Depreciation and Amortization 52,583,000
Capital Expenditure -67,086,000
Unlevered Free Cash Flow 287,206,637
Current Assets 998,848,000
Current Cash 645,379,000
Current Liabilities 636,981,000
Current Debt 0
Non-Cash Working Capital (NCWC) -283,512,000
Change in NCWC -6,390,000
EBIT 493,557,000
Tax Provision 186,159,000
Depreciation and Amortization 46,121,000
Capital Expenditure -22,718,000
Unlevered Free Cash Flow 325,827,755
Current Assets 816,371,000
Current Cash 542,143,000
Current Liabilities 551,350,000
Current Debt 0
Non-Cash Working Capital (NCWC) -277,122,000
Change in NCWC -55,023,000
EBIT 433,211,000
Tax Provision 160,778,000
Depreciation and Amortization 40,005,000
Capital Expenditure -26,583,000
Unlevered Free Cash Flow 232,623,307
Current Assets 776,081,000
Current Cash 532,151,000
Current Liabilities 466,029,000
Current Debt 0
Non-Cash Working Capital (NCWC) -222,099,000
Change in NCWC -70,915,000
EBIT 426,303,000
Tax Provision 157,028,000
Depreciation and Amortization 35,139,000
Capital Expenditure -30,117,000
Unlevered Free Cash Flow 205,529,529

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