Axon Enterprise’s DCF Stock Analysis

Here’s my assumptions for $AXON ( ▼ 0.4% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.09%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 2%

Last 24 Months Beta: 1.72

Historical Data

Revenue growth in the last 10 years (CAGR): 26.54%

Earnings growth in the last 10 years (CAGR): 34.20%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 27.78%

Future Assumptions

End of Year FCF growth: 15%

Growth until end of 2026: 25%

Growth until end of 2034: 20%

Perpetual growth: 3.2%

Net Debt: -0.32B

Outstanding Stock Options Present Value Assumption: $0.012B

Restricted Stock Units Present Value Assumption: $4.139B

Stock Valuation based on these assumptions: $480

Last update 05/16/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Axon Enterprises (AXON) and I don’t plan to add a position in the coming days.