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Pure Storage Inc

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Pure Storage Inc
Price: 35.87 USD -0.66% Market Closed
Updated: Nov 29, 2023

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Nov 27, 2023.

Estimated DCF Value of one PSTG stock is 35.9 USD. Compared to the current market price of 35.87 USD, the stock is Fairly Valued.

Base Case
35.9 USD
Fairly Valued
DCF Value
Worst Case
Base Case
Best Case
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 35.9 USD
Pure Storage Inc Competitors:
DCF Valuation
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Valuation Analysis

DCF Financials
Financials used in DCF Calculation

3.2B 5B
Operating Income
499m 912m
681m 921m

Sensitivity Analysis
DCF Value Sensitivity Analysis

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
1 valuation model available
Alpha Spread
Updated on Nov 27, 2023
Default Valuation
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Model Settings
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
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DCF Model
Base Case Scenario

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DCF Model

To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 10B USD
+ Cash & Equivalents 409m USD
+ Investments 820m USD
Firm Value 11.2B USD
- Debt 103m USD
Equity Value 11.1B USD
/ Shares Outstanding 310m
PSTG DCF Value 35.9 USD
Fairly Valued

To view the process of calculating the Present Value of Pure Storage Inc' future free cash flow, see the Present Value Calculation block.

See Also

Discover More
What is the DCF value of one PSTG stock?

Estimated DCF Value of one PSTG stock is 35.9 USD. Compared to the current market price of 35.87 USD, the stock is Fairly Valued.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project Pure Storage Inc's future free cash flow and discount it at a selected discount rate to calculate its Present Value (10B USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 35.9 USD per one PSTG share.