Discounted Cash Flow (DCF) Analysis Levered
Analog Devices, Inc. (ADI)
$177.69
+0.26 (+0.15%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 6,200.94 | 5,991.06 | 5,603.06 | 7,318.29 | 12,013.95 | 14,564.36 | 17,656.18 | 21,404.36 | 25,948.23 | 31,456.71 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,442.36 | 2,253.10 | 2,008.49 | 2,735.07 | 4,475.40 | 5,460.63 | 6,619.86 | 8,025.17 | 9,728.81 | 11,794.11 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -254.88 | -275.37 | -165.69 | -343.68 | -699.31 | -646.10 | -783.26 | -949.53 | -1,151.10 | -1,395.47 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,187.48 | 1,977.73 | 1,842.80 | 2,391.39 | 3,776.09 | 4,814.54 | 5,836.60 | 7,075.64 | 8,577.70 | 10,398.64 |
Weighted Average Cost Of Capital
| Share price | $ 177.69 |
|---|---|
| Beta | 1.150 |
| Diluted Shares Outstanding | 523.18 |
| Cost of Debt | |
| Tax Rate | 11.30 |
| After-tax Cost of Debt | 2.70% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.064 |
| Total Debt | 6,602.25 |
| Total Equity | 92,963.50 |
| Total Capital | 99,565.75 |
| Debt Weighting | 6.63 |
| Equity Weighting | 93.37 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 6,200.94 | 5,991.06 | 5,603.06 | 7,318.29 | 12,013.95 | 14,564.36 | 17,656.18 | 21,404.36 | 25,948.23 | 31,456.71 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,442.36 | 2,253.10 | 2,008.49 | 2,735.07 | 4,475.40 | 5,460.63 | 6,619.86 | 8,025.17 | 9,728.81 | 11,794.11 |
| Capital Expenditure | -254.88 | -275.37 | -165.69 | -343.68 | -699.31 | -646.10 | -783.26 | -949.53 | -1,151.10 | -1,395.47 |
| Free Cash Flow | 2,187.48 | 1,977.73 | 1,842.80 | 2,391.39 | 3,776.09 | 4,814.54 | 5,836.60 | 7,075.64 | 8,577.70 | 10,398.64 |
| WACC | ||||||||||
| PV LFCF | 4,431.64 | 4,945.16 | 5,518.19 | 6,157.61 | 6,871.12 | |||||
| SUM PV LFCF | 27,923.72 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.64 |
| Free cash flow (t + 1) | 10,606.61 |
| Terminal Value | 159,738.12 |
| Present Value of Terminal Value | 105,550.38 |
Intrinsic Value
| Enterprise Value | 133,474.10 |
|---|---|
| Net Debt | 5,131.68 |
| Equity Value | 128,342.42 |
| Shares Outstanding | 523.18 |
| Equity Value Per Share | 245.31 |