PSTG
Pure Storage, Inc. (PSTG)
Last Price$49.4(5.8%)
Market Cap$16.8B
DCF value
$10.1
Overvalued (DCF value)
(79.6%)
Discount Rate
9.1%
Long-Term Growth Rate
4.0%
Stock quality
7/10
Good

PSTG DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Feb'20 ActualJan'21 ActualFeb'22 ActualFeb'23 ActualFeb'24 ActualFeb'25 EstimateFeb'26 EstimateFeb'27 EstimateFeb'28 EstimateFeb'29 EstimateFeb'30 EstimateFeb'31 EstimateFeb'32 EstimateFeb'33 EstimateFeb'34 EstimateFeb'35 Terminal
% growth
1,643.4
20.9%
1,684.2
2.5%
2,180.8
29.5%
2,753.4
26.3%
2,830.6
2.8%
3,156.8
11.5%
3,521.4
11.6%
4,052.5
15.1%
4,532.7
11.8%
5,018.9
10.7%
5,501.1
9.6%
5,967.8
8.5%
6,407.3
7.4%
6,807.3
6.2%
7,155.9
5.1%
7,442.1
4.0%
(191.3)
(11.6%)
(230.0)
(13.7%)
(98.4)
(4.5%)
83.5
3.0%
53.6
1.9%
(139.1)
(4.4%)
(155.2)
(4.4%)
(178.6)
(4.4%)
(199.8)
(4.4%)
(221.2)
(4.4%)
(242.5)
(4.4%)
(263.0)
(4.4%)
(282.4)
(4.4%)
(300.0)
(4.4%)
(315.4)
(4.4%)
(328.0)
(4.4%)
NOPAT
% effective tax rate
(197.5)
(12.0%)
(240.2)
(14.3%)
(109.7)
(5.0%)
66.5
2.4%
36.2
1.3%
(94.2)
(3.0%)
(105.0)
(3.0%)
(120.9)
(3.0%)
(135.2)
(3.0%)
(149.7)
(3.0%)
(164.1)
(3.0%)
(178.0)
(3.0%)
(191.1)
(3.0%)
(203.1)
(3.0%)
(213.5)
(3.0%)
(222.0)
(3.0%)
% of revenue
89.7
5.5%
70.0
4.2%
83.2
3.8%
100.4
3.6%
124.4
4.4%
124.8
4.0%
139.2
4.0%
160.2
4.0%
179.1
4.0%
198.3
4.0%
217.4
4.0%
235.8
4.0%
253.2
4.0%
269.0
4.0%
282.8
4.0%
294.1
4.0%
% of revenue
(96.8)
(5.9%)
(95.0)
(5.6%)
(102.3)
(4.7%)
(158.1)
(5.7%)
(195.2)
(6.9%)
(182.3)
(5.8%)
(203.4)
(5.8%)
(234.1)
(5.8%)
(261.8)
(5.8%)
(289.9)
(5.8%)
(317.7)
(5.8%)
(344.7)
(5.8%)
(370.1)
(5.8%)
(393.2)
(5.8%)
(413.3)
(5.8%)
(429.9)
(5.8%)
45.6
2.8%
113.4
6.7%
138.1
6.3%
258.8
9.4%
142.2
5.0%
218.4
6.9%
243.7
6.9%
280.4
6.9%
313.6
6.9%
347.3
6.9%
380.6
6.9%
412.9
6.9%
443.3
6.9%
471.0
6.9%
495.1
6.9%
514.9
6.9%
Free Cash Flow to Firm (FCFF)
% of revenue
(159.0)
(9.7%)
(151.7)
(9.0%)
9.3
0.4%
267.5
9.7%
107.7
3.8%
66.7
2.1%
74.4
2.1%
85.6
2.1%
95.7
2.1%
106.0
2.1%
116.2
2.1%
126.0
2.1%
135.3
2.1%
143.8
2.1%
151.1
2.1%
157.2
2.1%
% of FCFF used in calculation
100.0%
92.6%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.96
0.88
0.80
0.74
0.68
0.62
0.57
0.52
0.48
Discounted FCFF (DFCFF)
65.9
75.1
77.0
78.2
78.6
78.1
76.9
74.9
72.2

Best stock ideas on the market right now

With Value Sense, you can find undervalued stocks list with intrinsic value. Discover more stock market investment ideas.

PSTG DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
677.0M
31.4%
Terminal Value (TV)
3,092.9M
Discounted TV
% share of EV
1,477.3M
68.6%
Total Debt
272.3M
3,413.2M
Shares outstanding
339.3M
FX rate
1.0
79.6% overvalued

Equity Value Bridge

PSTG DCF Financials

Revenue
$2,830.6M -> $7,155.9M 9.7% CAGR
Operating Income
$53.6M -> ($315.4M) N/A CAGR
FCFF
$107.7M -> $151.1M 3.4% CAGR

PSTG DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
8.0%
$11.0
$11.0
$11.0
$11.0
$11.0
8.5%
$10.0
$10.0
$11.0
$11.0
$11.0
9.1%
$9.0
$10.0
$10.0
$10.0
$10.0
9.5%
$9.0
$9.0
$10.0
$10.0
$10.0
10.0%
$9.0
$9.0
$9.0
$9.0
$10.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
8.0%
(78.0%)
(78.0%)
(78.0%)
(78.0%)
(78.0%)
8.5%
(80.0%)
(80.0%)
(78.0%)
(78.0%)
(78.0%)
9.1%
(82.0%)
(80.0%)
(80.0%)
(80.0%)
(80.0%)
9.5%
(82.0%)
(82.0%)
(80.0%)
(80.0%)
(80.0%)
10.0%
(82.0%)
(82.0%)
(82.0%)
(82.0%)
(80.0%)

Explore more intrinsic value tools hub for PSTG

FAQ

What is Pure Storage, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Pure Storage, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $10.1. This suggests it may be overvalued by (79.6%) compared to its current price of around $49.4, using a WACC of 9.1% and growth rates of 4.0%.

What is Pure Storage, Inc. WACC?

As of Mar 03, 2025, Pure Storage, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 9.1%.

What is Pure Storage, Inc. Enterprise Value?

As of Mar 03, 2025, Pure Storage, Inc.'s Enterprise Value (EV) is approximately $2,154.3M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.