DCF Tool

ZBRA

Zebra Technologies Corp. – Computer Terminal and Other Computer Peripheral Equipment Manufacturing
Zebra empowers the front line in retail/ecommerce, manufacturing, transportation and logistics, healthcare, public sector and other industries to achieve a performance edge. With more than 10,000 partners across 100 countries, Zebra delivers industry-tailored, end-to-end solutions to enable every asset and worker to be visible, connected and fully optimized. The company's market-leading solutions elevate the shopping experience, track and manage inventory as well as improve supply chain efficiency and patient care. In 2020, Zebra made Forbes Global 2000 list for the second consecutive year and was listed among Fast Company's Best Companies for Innovators.
Analysis Results
Intrinsic Value $1,554.99
Latest Price $262.01
Relative Value 83% undervalued
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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 41.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 41.5%, 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)
2022 2.19 1.99
2023 3.1 2.56
2024 4.39 3.29
2025 6.21 4.24
2026 8.79 5.45
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 112 billion. This corresponds to a present value of 63.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.5 billion. Adding in the terminal value gives a total present value of 80.5 billion.

There are presently 51.8 million outstanding shares, so the intrinsic value per share is 1554.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,378,000,000
Current Cash 664,000,000
Current Liabilities 3,600,000,000
Current Debt 138,000,000
Non-Cash Working Capital (NCWC) -748,000,000
Change in NCWC -366,000,000
EBIT 2,022,000,000
Tax Provision 262,000,000
Depreciation and Amortization 374,000,000
Capital Expenditure -118,000,000
Unlevered Free Cash Flow 1,638,361,570
Current Assets 1,273,000,000
Current Cash 168,000,000
Current Liabilities 1,851,000,000
Current Debt 364,000,000
Non-Cash Working Capital (NCWC) -382,000,000
Change in NCWC -340,000,000
EBIT 685,000,000
Tax Provision 56,000,000
Depreciation and Amortization 146,000,000
Capital Expenditure -67,000,000
Unlevered Free Cash Flow 355,500,000
Current Assets 1,195,000,000
Current Cash 30,000,000
Current Liabilities 1,404,000,000
Current Debt 197,000,000
Non-Cash Working Capital (NCWC) -42,000,000
Change in NCWC -16,000,000
EBIT 724,000,000
Tax Provision 54,000,000
Depreciation and Amortization 175,000,000
Capital Expenditure -61,000,000
Unlevered Free Cash Flow 756,622,073
Current Assets 1,162,000,000
Current Cash 44,000,000
Current Liabilities 1,301,000,000
Current Debt 157,000,000
Non-Cash Working Capital (NCWC) -26,000,000
Change in NCWC -78,000,000
EBIT 629,000,000
Tax Provision 103,000,000
Depreciation and Amortization 175,000,000
Capital Expenditure -64,000,000
Unlevered Free Cash Flow 538,360,687
Current Assets 1,063,000,000
Current Cash 62,000,000
Current Liabilities 1,000,000,000
Current Debt 51,000,000
Non-Cash Working Capital (NCWC) 52,000,000
Change in NCWC -65,000,000
EBIT 388,000,000
Tax Provision 71,000,000
Depreciation and Amortization 263,000,000
Capital Expenditure -50,000,000
Unlevered Free Cash Flow 222,954,545
Current Assets 1,222,000,000
Current Cash 156,000,000
Current Liabilities 949,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 117,000,000
Change in NCWC -130,000,000
EBIT 286,000,000
Tax Provision 8,000,000
Depreciation and Amortization 304,000,000
Capital Expenditure -77,000,000
Unlevered Free Cash Flow 383,000,000
Current Assets 1,334,000,000
Current Cash 192,000,000
Current Liabilities 895,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 247,000,000
Change in NCWC -58,390,000
EBIT 222,000,000
Tax Provision -22,000,000
Depreciation and Amortization 320,000,000
Capital Expenditure -122,000,000
Unlevered Free Cash Flow 361,610,000
Current Assets 1,672,050,000
Current Cash 418,335,000
Current Liabilities 955,847,000
Current Debt 7,522,000
Non-Cash Working Capital (NCWC) 305,390,000
Change in NCWC 83,548,000
EBIT 221,308,000
Tax Provision -15,800,000
Depreciation and Amortization 81,371,000
Capital Expenditure -39,291,000
Unlevered Free Cash Flow 346,936,000
Current Assets 754,103,000
Current Cash 413,207,000
Current Liabilities 119,054,000
Current Debt 0
Non-Cash Working Capital (NCWC) 221,842,000
Change in NCWC -4,927,000
EBIT 170,844,000
Tax Provision 29,602,000
Depreciation and Amortization 32,110,000
Capital Expenditure -21,711,000
Unlevered Free Cash Flow 145,446,094
Current Assets 710,863,000
Current Cash 388,880,000
Current Liabilities 95,214,000
Current Debt 0
Non-Cash Working Capital (NCWC) 226,769,000
Change in NCWC -30,379,000
EBIT 177,534,000
Tax Provision 42,277,000
Depreciation and Amortization 26,177,000
Capital Expenditure -22,443,000
Unlevered Free Cash Flow 105,171,621

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