Discounted Cash Flow (DCF) Analysis Levered
Applied Materials, Inc. (AMAT)
$119.48
+4.41 (+3.83%)
All numbers are in Millions, Currency in USD
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 | 14,698 | 16,705 | 14,608 | 17,202 | 23,063 | 26,114.86 | 29,570.56 | 33,483.54 | 37,914.32 | 42,931.41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,609 | 3,787 | 3,247 | 3,804 | 5,442 | 6,014.86 | 6,810.79 | 7,712.04 | 8,732.56 | 9,888.11 |
| 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 | 3,264 | 3,165 | 2,806 | 3,382 | 4,774 | 5,260.71 | 5,956.84 | 6,745.09 | 7,637.65 | 8,648.32 |
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 | 14,698 | 16,705 | 14,608 | 17,202 | 23,063 | 26,114.86 | 29,570.56 | 33,483.54 | 37,914.32 | 42,931.41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,609 | 3,787 | 3,247 | 3,804 | 5,442 | 6,014.86 | 6,810.79 | 7,712.04 | 8,732.56 | 9,888.11 |
| Capital Expenditure | -345 | -622 | -441 | -422 | -668 | -754.16 | -853.95 | -966.95 | -1,094.91 | -1,239.79 |
| Free Cash Flow | 3,264 | 3,165 | 2,806 | 3,382 | 4,774 | 5,260.71 | 5,956.84 | 6,745.09 | 7,637.65 | 8,648.32 |
| WACC | ||||||||||
| PV LFCF | 4,816.17 | 4,992.66 | 5,175.62 | 5,365.28 | 5,561.88 | |||||
| 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 |