Discounted Cash Flow (DCF) Analysis Levered

Applied Materials, Inc. (AMAT)

$119.48

+4.41 (+3.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 112.75 | 119.48 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,69816,70514,60817,20223,06326,114.8629,570.5633,483.5437,914.3242,931.41
Revenue (%)
Operating Cash Flow 3,6093,7873,2473,8045,4426,014.866,810.797,712.048,732.569,888.11
Operating Cash Flow (%)
Capital Expenditure -345-622-441-422-668-754.16-853.95-966.95-1,094.91-1,239.79
Capital Expenditure (%)
Free Cash Flow 3,2643,1652,8063,3824,7745,260.715,956.846,745.097,637.658,648.32

Weighted Average Cost Of Capital

Share price $ 119.48
Beta 1.438
Diluted Shares Outstanding 919
Cost of Debt
Tax Rate 13.04
After-tax Cost of Debt 3.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.530
Total Debt 5,753
Total Equity 109,802.12
Total Capital 115,555.12
Debt Weighting 4.98
Equity Weighting 95.02
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,69816,70514,60817,20223,06326,114.8629,570.5633,483.5437,914.3242,931.41
Operating Cash Flow 3,6093,7873,2473,8045,4426,014.866,810.797,712.048,732.569,888.11
Capital Expenditure -345-622-441-422-668-754.16-853.95-966.95-1,094.91-1,239.79
Free Cash Flow 3,2643,1652,8063,3824,7745,260.715,956.846,745.097,637.658,648.32
WACC
PV LFCF 4,816.174,992.665,175.625,365.285,561.88
SUM PV LFCF 25,911.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.23
Free cash flow (t + 1) 8,821.28
Terminal Value 122,009.46
Present Value of Terminal Value 78,466.42

Intrinsic Value

Enterprise Value 104,378.04
Net Debt 758
Equity Value 103,620.04
Shares Outstanding 919
Equity Value Per Share 112.75