DCF Tool

NTAP

Netapp Inc – Computer Storage Device Manufacturing
NetApp, Inc. is an American hybrid cloud data services and data management company. NetApp offers cloud data services for management of applications and data both online and physically. n addition, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Further, it provides assessment, design, implementation, and migration services.
Analysis Results
Intrinsic Value $117.00
Latest Price $88.03
Relative Value 25% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 7.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.2%, 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 (billion) Present value (billion)
2024 1.25 1.16
2025 1.34 1.15
2026 1.44 1.14
2027 1.54 1.14
2028 1.65 1.13
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 28.9 billion. This corresponds to a present value of 18.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.72 billion. Adding in the terminal value gives a total present value of 24.1 billion.

There are presently 206.0 million outstanding shares, so the intrinsic value per share is 117.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,680,000,000
Current Cash 3,077,000,000
Current Liabilities 3,467,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,864,000,000
Change in NCWC 34,000,000
EBIT 1,159,000,000
Tax Provision -208,000,000
Depreciation and Amortization 248,000,000
Capital Expenditure -239,000,000
Unlevered Free Cash Flow 1,202,000,000
Current Assets 5,945,000,000
Current Cash 4,140,000,000
Current Liabilities 3,953,000,000
Current Debt 250,000,000
Non-Cash Working Capital (NCWC) -1,898,000,000
Change in NCWC 157,000,000
EBIT 1,203,000,000
Tax Provision 158,000,000
Depreciation and Amortization 194,000,000
Capital Expenditure -226,000,000
Unlevered Free Cash Flow 1,154,416,438
Current Assets 6,001,000,000
Current Cash 4,604,000,000
Current Liabilities 3,452,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,055,000,000
Change in NCWC -347,000,000
EBIT 933,000,000
Tax Provision 232,000,000
Depreciation and Amortization 207,000,000
Capital Expenditure -162,000,000
Unlevered Free Cash Flow 405,993,762
Current Assets 4,274,000,000
Current Cash 2,888,000,000
Current Liabilities 3,616,000,000
Current Debt 522,000,000
Non-Cash Working Capital (NCWC) -1,708,000,000
Change in NCWC -195,000,000
EBIT 928,000,000
Tax Provision 125,000,000
Depreciation and Amortization 193,000,000
Capital Expenditure -124,000,000
Unlevered Free Cash Flow 679,118,644
Current Assets 5,610,000,000
Current Cash 3,905,000,000
Current Liabilities 3,867,000,000
Current Debt 649,000,000
Non-Cash Working Capital (NCWC) -1,513,000,000
Change in NCWC 266,000,000
EBIT 1,183,000,000
Tax Provision 99,000,000
Depreciation and Amortization 197,000,000
Capital Expenditure -173,000,000
Unlevered Free Cash Flow 1,380,636,435
Current Assets 6,856,000,000
Current Cash 5,397,000,000
Current Liabilities 3,623,000,000
Current Debt 385,000,000
Non-Cash Working Capital (NCWC) -1,779,000,000
Change in NCWC -306,000,000
EBIT 907,000,000
Tax Provision 1,090,000,000
Depreciation and Amortization 198,000,000
Capital Expenditure -145,000,000
Unlevered Free Cash Flow -193,881,646
Current Assets 6,198,000,000
Current Cash 4,928,000,000
Current Liabilities 4,122,000,000
Current Debt 1,379,000,000
Non-Cash Working Capital (NCWC) -1,473,000,000
Change in NCWC 200,000,000
EBIT 707,000,000
Tax Provision 156,000,000
Depreciation and Amortization 226,000,000
Capital Expenditure -175,000,000
Unlevered Free Cash Flow 792,147,368
Current Assets 6,448,000,000
Current Cash 5,308,000,000
Current Liabilities 3,662,000,000
Current Debt 849,000,000
Non-Cash Working Capital (NCWC) -1,673,000,000
Change in NCWC -408,400,000
EBIT 413,000,000
Tax Provision 116,000,000
Depreciation and Amortization 279,000,000
Capital Expenditure -160,000,000
Unlevered Free Cash Flow -15,263,768
Current Assets 6,773,400,000
Current Cash 5,329,000,000
Current Liabilities 2,709,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,264,600,000
Change in NCWC -38,000,000
EBIT 716,500,000
Tax Provision 152,900,000
Depreciation and Amortization 307,200,000
Capital Expenditure -175,300,000
Unlevered Free Cash Flow 656,706,327
Current Assets 6,471,300,000
Current Cash 5,003,300,000
Current Liabilities 2,694,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,226,600,000
Change in NCWC -119,400,000
EBIT 822,600,000
Tax Provision 103,200,000
Depreciation and Amortization 334,100,000
Capital Expenditure -221,400,000
Unlevered Free Cash Flow 701,289,064
Current Assets 8,418,200,000
Current Cash 6,952,600,000
Current Liabilities 3,830,600,000
Current Debt 1,257,800,000
Non-Cash Working Capital (NCWC) -1,107,200,000
Change in NCWC -217,700,000
EBIT 609,500,000
Tax Provision 61,300,000
Depreciation and Amortization 344,600,000
Capital Expenditure -303,300,000
Unlevered Free Cash Flow 367,158,683
Current Assets 6,826,500,000
Current Cash 5,398,500,000
Current Liabilities 3,519,800,000
Current Debt 1,202,300,000
Non-Cash Working Capital (NCWC) -889,500,000
Change in NCWC 142,400,000
EBIT 756,300,000
Tax Provision 107,000,000
Depreciation and Amortization 293,100,000
Capital Expenditure -407,100,000
Unlevered Free Cash Flow 671,106,372

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.