The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$860.12||$1,308.35||$1,454.59||$1,357.67||$1,026.00|
|Source||Analyst x14||Analyst x13||Analyst x7||Analyst x3||Analyst x1|
Discounted (@ 11.67%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $1,026 × (1 + 2.47%) ÷ (11.67% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$10,909 = $4,328 + $6,581
Value = Total value / Shares Outstanding ($10,909 / 622)Discount to Share Price
Value per share:
Current discount (share price of $27.71): -57.87%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 11.67% = 2.47% + (1.222 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($17,222,835,936).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.222 = 0.929 (1 + (1- 2.7%) (32.44%))
Levered Beta used in calculation = 1.222
Mr. Gregory S. Clark, also known as Greg, is a Co-Founder at Anonyome Labs, Inc. He has been the Chief Executive Officer of Symantec Corporation since August 1, 2016. Mr. Clark served as the Chief Executive Officer of Blue Coat Systems Inc. since September 15, 2011 and Blue Coat, Inc. since September 2011. He has more than 23 years of experience and has a unique combination of technical depth, market insight and operational skills. He served as the President of Blue Coat Systems Inc. since September 15, 2011. Mr. Clark served as a Senior Operating Partner at Thoma Bravo, LLC. Mr. Clark served as the Chief Executive Officer and President of ABB Enterprise Software Pty Ltd (alternate name, Mincom Pty Ltd) from April 2008 to August 2011. Mr. Clark was the founder of E2open, Inc. He served as Chief Executive Officer of E2open, Inc. from 2001 to July 2008 and also served as its President. He was responsible for leading E2open's overall operations, focusing on the development of new products and technologies and the successful delivery of customer projects. He was an IBM Distinguished Engineer and Vice President of IBM's Tivoli Systems Inc. from 1999 to 2001, where he was instrumental in defining and selling IBM security and management products. Mr. Clark founded DASCOM, Inc. in 1994 and served as its Chairman, Chief Operating Officer and Chief Technology Officer. He was responsible for the strategic leadership of engineering, including product architecture, engineering process and the development efforts at DASCOM. He founded Dascom. He served as Chief Executive Officer of Ventyx Pty Ltd. since April 2008. He held senior roles with international IT companies, AT&T Unix Software Operation, UNIX System Laboratories and Stallion Technologies., a division of Bell Labs, responsible for the integration and support of UNIX technologies in the Pacific Rim. Mr. Clark spent several years as a key contributor and leader of the team that worked on the Portable Operating System Interface (POSIX) standard, UNIX ports to SMP hardware and ports of network management technology to telecommunications transmission equipment. Prior to USL, he worked in the advance manufacturing division of BDM Corporation and led the core technical team at the serial I/O hardware manufacturer Stallion Technologies. Mr. Clark was instrumental in the security standards arena, driving authorization standards in The Open Group, the Object Management Group, the Securities Industry Middleware Council and the Internet Engineering Task Force. He served as Chairman of Keynote Systems, Inc. He has been a Director of Symantec Corporation since August 1, 2016. He served as Director of Blue Coat Systems Inc. since September 15, 2011 and Blue Coat, Inc. since September 2011. He served as a Director of E2open, Inc. He served as a Director at Imperva Inc. from June 2014 to August 10, 2015. He served as a Director of Emulex Corporation from April 1, 2013 to May 5, 2015. He served as a Director of East Asia Minerals Corporation from May 3, 2011 to September 9, 2011. Mr. Clark has BS in Mathematics and Thermal Physics from Griffith University in Brisbane, Australia and attended the University of New Mexico for post-graduate studies in computer science.
Average tenure and age of the Symantec management team in years:
Average tenure and age of the Symantec board of directors in years:
To get some insight, this article will interpret Symantec's margin performance to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Margin Calculation for SYMC Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 1.01 Billion ÷ 4.74 Billion = 21.27% The past five years have seen Symantec's margin contract, as a result of net income declining at -35.24% on average, which was more than the average fall in revenue of -10.33%, indicating that that the company's decline in the top line has also corresponded with a smaller portion flowing out as earnings. … Using Symantec's margin expectations as a way to understand projections for the future It is expected that margins will continue to contract, with annual revenue growth tipped at 2.48% and a -63.06% expected annual decline in net income.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SYMC Price per share = $27.54 Earnings per share = $1.639 ∴ Price-Earnings Ratio = $27.54 ÷ $1.639 = 16.8x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with SYMC, then SYMC’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price. … If this assumption does not hold true, SYMC’s lower P/E ratio may be because firms in our peer group are being overvalued by the market.Simply Wall St - – Full article
A question to answer is whether Symantec's current trading price of $25.91 reflective of the actual value of the large-cap? … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … If you believe SYMC should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.Simply Wall St - – Full article
Using the most recent financial data, I am going to take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $740.88 $1,317.49 $1,313.73 $1,130.50 $1,020.00 Source Analyst x14 Analyst x14 Analyst x4 Analyst x2 Analyst x1 Present Value Discounted @ 10.71% $669.21 $1,074.92 $968.15 $752.53 $613.29 Present Value of 5-year Cash Flow (PVCF)= $4,078 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $1,020 × (1 + 2.5%) ÷ (10.7% – 2.5%) = $12,684 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $12,684 / ( 1 + 10.7%)5 = $7,627 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $11,705.Simply Wall St - – Full article
How does SYMC’s operating cash flow stack up against its debt? … NasdaqGS:SYMC Historical Debt Dec 5th 17 A simple way to determine whether the company has put debt into good use is to look at its operating cash flow against its debt obligation. … Last year, SYMC’s operating cash flow was 0.14x its current debt.Simply Wall St - – Full article
This rate is larger than the growth rate of the US stock market as a whole. … NasdaqGS:SYMC PE PEG Gauge Oct 20th 17 The software tech industry is trading at a PE ratio of 42x, above the broader US stock market PE of 22x. … If SYMC has been on your watchlist for a while, now may be the time to enter into the stock, if you like its ability to deliver growth and are not highly concentrated in the tech industry.Simply Wall St - – Full article
Symantec Corporation, together with its subsidiaries, provides cybersecurity solutions worldwide. It operates through two segments, Consumer Digital Safety and Enterprise Security. The Consumer Digital Safety segment provides Norton-branded services that provide multi-layer security services across desktop and mobile operating systems, public Wi-Fi connections, and home networks to defend against online threats to individuals, families, and small businesses. This segment also offers LifeLock-branded identity protection services, such as identifying and notifying users of identity-related and other events, and assisting users in remediating their impact; and digital safety platform designed to protect information across devices, customer identities, and the connected homes and families. The Enterprise Security segment provides endpoint protection products, endpoint management, messaging protection products, information protection products, cyber security services, Website security, and advanced Web and cloud security offerings. Its enterprise endpoint, network security, and management offerings supports evolving endpoints and networks, as well as provides an integrated cyber defense platform. This segment delivers its solutions through various methods, such as software, appliance, software-as-a-service, and managed services. The company serves individuals, households, and small businesses; small, medium, and large enterprises; and government and public sector customers. It markets and sells its products and related services through direct sales force, direct marketing and co-marketing programs, e-commerce and telesales platforms, distributors, Internet-based resellers, system builders, Internet service providers, employee benefits providers, wireless carriers, retailers, original equipment manufacturers, and retail and online stores. Symantec Corporation was founded in 1982 and is headquartered in Mountain View, California.
350 Ellis Street,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||SYMC||Common Stock||Nasdaq Global Select||US||USD||23. Jun 1989|
|DB||SYM||Common Stock||Deutsche Boerse AG||DE||EUR||23. Jun 1989|
|XTRA||SYM||Common Stock||XETRA Trading Platform||DE||EUR||23. Jun 1989|
|WBAG||SYMC||Common Stock||Wiener Boerse AG||AT||EUR||23. Jun 1989|
|BMV||SYMC *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||23. Jun 1989|
|Company Analysis updated:||2018/04/23 00:11|
|Last estimates confirmation:||2018/04/19|
|Last earnings update:||2017/12/29|
|Last annual earnings update:||2017/03/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.