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Western Digital Corp. – Computer Storage Device Manufacturing
wd, a western digital company, is a long-time innovator and storage industry leader. as a storage technology pacesetter, the company produces reliable, high-performance hard disk drives and solid state drives. these drives are deployed by oems and integrators in desktop and mobile computers, enterprise computing systems, embedded systems and consumer electronics applications, as well as by the company in providing its own storage products. wd’s leading storage devices and systems, networking products, media players and software solutions empower people around the world to easily save, store, protect, share and experience their content on multiple devices. wd was established in 1970 and is headquartered in irvine, calif. for more information, please visit the company’s website at www.wd.com.
Analysis Results
Intrinsic Value $43.65
Latest Price $70.17
Relative Value 61% overvalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 -4.5%.

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 -4.5%, 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 (billion) Present value (billion)
2024 1.38 1.26
2025 1.32 1.1
2026 1.26 0.962
2027 1.2 0.84
2028 1.15 0.733
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 15.9 billion. This corresponds to a present value of 9.32 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.9 billion. Adding in the terminal value gives a total present value of 14.2 billion.

There are presently 326.0 million outstanding shares, so the intrinsic value per share is 43.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,886,000,000
Current Cash 2,023,000,000
Current Liabilities 5,434,000,000
Current Debt 1,213,000,000
Non-Cash Working Capital (NCWC) 1,642,000,000
Change in NCWC -247,000,000
EBIT -1,092,000,000
Tax Provision 146,000,000
Depreciation and Amortization 828,000,000
Capital Expenditure -821,000,000
Unlevered Free Cash Flow -1,332,000,000
Current Assets 9,453,000,000
Current Cash 2,327,000,000
Current Liabilities 5,237,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,889,000,000
Change in NCWC 121,000,000
EBIT 2,434,000,000
Tax Provision 623,000,000
Depreciation and Amortization 929,000,000
Capital Expenditure -1,122,000,000
Unlevered Free Cash Flow 1,647,736,222
Current Assets 9,757,000,000
Current Cash 3,370,000,000
Current Liabilities 4,870,000,000
Current Debt 251,000,000
Non-Cash Working Capital (NCWC) 1,768,000,000
Change in NCWC -112,000,000
EBIT 1,173,000,000
Tax Provision 106,000,000
Depreciation and Amortization 1,212,000,000
Capital Expenditure -1,146,000,000
Unlevered Free Cash Flow 992,870,550
Current Assets 9,048,000,000
Current Cash 3,048,000,000
Current Liabilities 4,406,000,000
Current Debt 286,000,000
Non-Cash Working Capital (NCWC) 1,880,000,000
Change in NCWC 399,000,000
EBIT 367,000,000
Tax Provision 204,000,000
Depreciation and Amortization 1,566,000,000
Capital Expenditure -647,000,000
Unlevered Free Cash Flow 1,685,000,000
Current Assets 8,477,000,000
Current Cash 3,455,000,000
Current Liabilities 3,817,000,000
Current Debt 276,000,000
Non-Cash Working Capital (NCWC) 1,481,000,000
Change in NCWC 148,000,000
EBIT 253,000,000
Tax Provision 467,000,000
Depreciation and Amortization 1,812,000,000
Capital Expenditure -876,000,000
Unlevered Free Cash Flow 1,337,000,000
Current Assets 10,638,000,000
Current Cash 5,028,000,000
Current Liabilities 4,456,000,000
Current Debt 179,000,000
Non-Cash Working Capital (NCWC) 1,333,000,000
Change in NCWC 766,000,000
EBIT 3,832,000,000
Tax Provision -95,000,000
Depreciation and Amortization 2,056,000,000
Capital Expenditure -835,000,000
Unlevered Free Cash Flow 5,819,000,000
Current Assets 11,056,000,000
Current Cash 6,378,000,000
Current Liabilities 4,344,000,000
Current Debt 233,000,000
Non-Cash Working Capital (NCWC) 567,000,000
Change in NCWC -24,000,000
EBIT 2,186,000,000
Tax Provision 372,000,000
Depreciation and Amortization 2,128,000,000
Capital Expenditure -578,000,000
Unlevered Free Cash Flow 2,654,533,159
Current Assets 12,584,000,000
Current Cash 8,378,000,000
Current Liabilities 6,949,000,000
Current Debt 3,334,000,000
Non-Cash Working Capital (NCWC) 591,000,000
Change in NCWC 191,000,000
EBIT 811,000,000
Tax Provision -89,000,000
Depreciation and Amortization 1,154,000,000
Capital Expenditure -584,000,000
Unlevered Free Cash Flow 1,572,000,000
Current Assets 8,517,000,000
Current Cash 5,286,000,000
Current Liabilities 3,242,000,000
Current Debt 411,000,000
Non-Cash Working Capital (NCWC) 400,000,000
Change in NCWC 488,000,000
EBIT 1,802,000,000
Tax Provision 112,000,000
Depreciation and Amortization 1,114,000,000
Capital Expenditure -612,000,000
Unlevered Free Cash Flow 2,664,020,291
Current Assets 8,720,000,000
Current Cash 5,088,000,000
Current Liabilities 3,845,000,000
Current Debt 125,000,000
Non-Cash Working Capital (NCWC) -88,000,000
Change in NCWC 366,000,000
EBIT 1,938,000,000
Tax Provision 135,000,000
Depreciation and Amortization 1,244,000,000
Capital Expenditure -628,000,000
Unlevered Free Cash Flow 2,770,667,808
Current Assets 7,598,000,000
Current Cash 4,309,000,000
Current Liabilities 3,973,000,000
Current Debt 230,000,000
Non-Cash Working Capital (NCWC) -454,000,000
Change in NCWC -585,000,000
EBIT 2,085,000,000
Tax Provision 242,000,000
Depreciation and Amortization 1,233,000,000
Capital Expenditure -952,000,000
Unlevered Free Cash Flow 1,368,094,926
Current Assets 7,141,000,000
Current Cash 3,208,000,000
Current Liabilities 4,032,000,000
Current Debt 230,000,000
Non-Cash Working Capital (NCWC) 131,000,000
Change in NCWC 160,000,000
EBIT 2,065,000,000
Tax Provision 145,000,000
Depreciation and Amortization 825,000,000
Capital Expenditure -717,000,000
Unlevered Free Cash Flow 2,162,581,673

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