DCF Tool

NTCT

a leading provider of business assurance – a powerful combination of service assurance, cybersecurity, and business intelligence solutions – for today’s most demanding service provider, enterprise and government networks. netscout’s adaptive service intelligence (asi) technology continuously monitors the service delivery environment to identify performance issues and provides insight into network-based security threats, helping teams to quickly resolve issues that can cause business disruptions or impact user experience. netscout delivers unmatched service visibility and protects the digital infrastructure that supports our connected world.
Analysis Results
Intrinsic Value $32.35
Latest Price $19.68
Relative Value 39% 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 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 (million) Present value (million)
2024 119 111
2025 128 110
2026 137 109
2027 147 109
2028 157 108
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2750 million. This corresponds to a present value of 1750 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 547 million. Adding in the terminal value gives a total present value of 2300 million.

There are presently 71.0 million outstanding shares, so the intrinsic value per share is 32.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 617,360,000
Current Cash 418,998,000
Current Liabilities 453,607,000
Current Debt 0
Non-Cash Working Capital (NCWC) -255,245,000
Change in NCWC 2,174,000
EBIT 79,446,000
Tax Provision 8,767,000
Depreciation and Amortization 85,918,000
Capital Expenditure -10,648,000
Unlevered Free Cash Flow 146,709,438
Current Assets 921,939,000
Current Cash 703,198,000
Current Liabilities 476,160,000
Current Debt 0
Non-Cash Working Capital (NCWC) -257,419,000
Change in NCWC -92,163,000
EBIT 48,634,000
Tax Provision 7,018,000
Depreciation and Amortization 95,784,000
Capital Expenditure -10,400,000
Unlevered Free Cash Flow 33,897,492
Current Assets 722,472,000
Current Cash 476,453,000
Current Liabilities 411,275,000
Current Debt 0
Non-Cash Working Capital (NCWC) -165,256,000
Change in NCWC -39,544,000
EBIT 37,192,000
Tax Provision 2,952,000
Depreciation and Amortization 105,828,000
Capital Expenditure -16,523,000
Unlevered Free Cash Flow 82,030,529
Current Assets 659,743,000
Current Cash 386,458,000
Current Liabilities 398,997,000
Current Debt 0
Non-Cash Working Capital (NCWC) -125,712,000
Change in NCWC -61,022,000
EBIT 20,312,000
Tax Provision 4,678,000
Depreciation and Amortization 116,104,000
Capital Expenditure -19,922,000
Unlevered Free Cash Flow 50,794,000
Current Assets 801,222,000
Current Cash 485,976,000
Current Liabilities 379,936,000
Current Debt 0
Non-Cash Working Capital (NCWC) -64,690,000
Change in NCWC 43,964,000
EBIT -7,544,000
Tax Provision -19,588,000
Depreciation and Amortization 137,878,000
Capital Expenditure -23,526,000
Unlevered Free Cash Flow 150,772,000
Current Assets 752,408,000
Current Cash 447,762,000
Current Liabilities 413,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) -108,654,000
Change in NCWC -60,161,000
EBIT 1,151,000
Tax Provision -98,471,000
Depreciation and Amortization 153,503,000
Capital Expenditure -16,594,000
Unlevered Free Cash Flow 77,899,000
Current Assets 854,466,000
Current Cash 442,772,000
Current Liabilities 460,187,000
Current Debt 0
Non-Cash Working Capital (NCWC) -48,493,000
Change in NCWC 6,799,000
EBIT 66,065,000
Tax Provision 18,894,000
Depreciation and Amortization 160,863,000
Capital Expenditure -32,148,000
Unlevered Free Cash Flow 177,659,634
Current Assets 740,478,000
Current Cash 338,714,000
Current Liabilities 457,056,000
Current Debt 0
Non-Cash Working Capital (NCWC) -55,292,000
Change in NCWC 1,342,000
EBIT -25,082,000
Tax Provision -4,070,000
Depreciation and Amortization 140,071,000
Capital Expenditure -30,370,000
Unlevered Free Cash Flow 85,961,000
Current Assets 337,284,000
Current Cash 206,285,000
Current Liabilities 187,633,000
Current Debt 0
Non-Cash Working Capital (NCWC) -56,634,000
Change in NCWC 4,878,000
EBIT 96,773,000
Tax Provision 33,773,000
Depreciation and Amortization 19,709,000
Capital Expenditure -12,982,000
Unlevered Free Cash Flow 73,962,009
Current Assets 278,762,000
Current Cash 177,310,000
Current Liabilities 162,964,000
Current Debt 0
Non-Cash Working Capital (NCWC) -61,512,000
Change in NCWC -16,385,000
EBIT 78,014,000
Tax Provision 28,750,000
Depreciation and Amortization 18,260,000
Capital Expenditure -14,152,000
Unlevered Free Cash Flow 36,928,655
Current Assets 237,312,000
Current Cash 137,268,000
Current Liabilities 145,171,000
Current Debt 0
Non-Cash Working Capital (NCWC) -45,127,000
Change in NCWC -3,851,000
EBIT 65,594,000
Tax Provision 23,127,000
Depreciation and Amortization 17,464,000
Capital Expenditure -11,948,000
Unlevered Free Cash Flow 43,457,813

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