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STX

Seagate Technology Holdings Plc – Computer Storage Device Manufacturing
at seagate, we know that data is always in motion, alive, connected—and we harness it in order to maximize human potential. since 1979, we have been creating precision-engineered data storage technologies that deliver superior capacity, speed, safety, and performance. we are a diverse workforce of 40,000 creative, hard-working, passionate people all over the world—silicon valley, the united kingdom, singapore, india, china, and beyond.
Analysis Results
Intrinsic Value $54.75
Latest Price $65.90
Relative Value 20% overvalued
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Cash Flow (Billions)
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 -5.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -5.4%, 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 1.1 1.01
2025 1.04 0.876
2026 0.985 0.759
2027 0.932 0.658
2028 0.881 0.571
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 12.7 billion. This corresponds to a present value of 7.56 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.87 billion. Adding in the terminal value gives a total present value of 11.4 billion.

There are presently 209.0 million outstanding shares, so the intrinsic value per share is 54.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,905,000,000
Current Cash 786,000,000
Current Liabilities 2,592,000,000
Current Debt 63,000,000
Non-Cash Working Capital (NCWC) -410,000,000
Change in NCWC -857,000,000
EBIT 60,000,000
Tax Provision 33,000,000
Depreciation and Amortization 513,000,000
Capital Expenditure -316,000,000
Unlevered Free Cash Flow -600,000,000
Current Assets 4,033,000,000
Current Cash 615,000,000
Current Liabilities 3,555,000,000
Current Debt 584,000,000
Non-Cash Working Capital (NCWC) 447,000,000
Change in NCWC 553,000,000
EBIT 1,958,000,000
Tax Provision 30,000,000
Depreciation and Amortization 451,000,000
Capital Expenditure -381,000,000
Unlevered Free Cash Flow 2,546,014,889
Current Assets 3,779,000,000
Current Cash 1,209,000,000
Current Liabilities 2,921,000,000
Current Debt 245,000,000
Non-Cash Working Capital (NCWC) -106,000,000
Change in NCWC 205,000,000
EBIT 1,500,000,000
Tax Provision 34,000,000
Depreciation and Amortization 397,000,000
Capital Expenditure -498,000,000
Unlevered Free Cash Flow 1,566,166,172
Current Assets 4,114,000,000
Current Cash 1,722,000,000
Current Liabilities 2,722,000,000
Current Debt 19,000,000
Non-Cash Working Capital (NCWC) -311,000,000
Change in NCWC -222,000,000
EBIT 1,382,000,000
Tax Provision 28,000,000
Depreciation and Amortization 379,000,000
Capital Expenditure -585,000,000
Unlevered Free Cash Flow 916,503,875
Current Assets 4,363,000,000
Current Cash 2,220,000,000
Current Liabilities 2,232,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -89,000,000
Change in NCWC 145,000,000
EBIT 1,465,000,000
Tax Provision -640,000,000
Depreciation and Amortization 541,000,000
Capital Expenditure -602,000,000
Unlevered Free Cash Flow 1,549,000,000
Current Assets 4,310,000,000
Current Cash 1,853,000,000
Current Liabilities 3,190,000,000
Current Debt 499,000,000
Non-Cash Working Capital (NCWC) -234,000,000
Change in NCWC -110,000,000
EBIT 1,723,000,000
Tax Provision 236,000,000
Depreciation and Amortization 598,000,000
Capital Expenditure -366,000,000
Unlevered Free Cash Flow 1,558,238,363
Current Assets 5,041,000,000
Current Cash 2,539,000,000
Current Liabilities 2,626,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -124,000,000
Change in NCWC -277,000,000
EBIT 1,232,000,000
Tax Provision 43,000,000
Depreciation and Amortization 749,000,000
Capital Expenditure -434,000,000
Unlevered Free Cash Flow 1,204,998,773
Current Assets 3,533,000,000
Current Cash 1,131,000,000
Current Liabilities 2,249,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 153,000,000
Change in NCWC -587,000,000
EBIT 620,000,000
Tax Provision 26,000,000
Depreciation and Amortization 815,000,000
Capital Expenditure -587,000,000
Unlevered Free Cash Flow 202,167,883
Current Assets 5,568,000,000
Current Cash 2,485,000,000
Current Liabilities 2,343,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 740,000,000
Change in NCWC 15,000,000
EBIT 1,470,000,000
Tax Provision 228,000,000
Depreciation and Amortization 841,000,000
Capital Expenditure -747,000,000
Unlevered Free Cash Flow 1,408,868,020
Current Assets 5,777,000,000
Current Cash 2,654,000,000
Current Liabilities 2,398,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 725,000,000
Change in NCWC 109,000,000
EBIT 1,800,000,000
Tax Provision -14,000,000
Depreciation and Amortization 879,000,000
Capital Expenditure -559,000,000
Unlevered Free Cash Flow 2,229,000,000
Current Assets 5,412,000,000
Current Cash 2,188,000,000
Current Liabilities 2,611,000,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) 616,000,000
Change in NCWC -180,000,000
EBIT 2,093,000,000
Tax Provision -7,000,000
Depreciation and Amortization 873,000,000
Capital Expenditure -786,000,000
Unlevered Free Cash Flow 2,000,000,000
Current Assets 6,310,000,000
Current Cash 2,118,000,000
Current Liabilities 3,396,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 796,000,000
Change in NCWC 425,000,000
EBIT 3,112,000,000
Tax Provision 20,000,000
Depreciation and Amortization 814,000,000
Capital Expenditure -636,000,000
Unlevered Free Cash Flow 3,693,403,886

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