Discounted Cash Flow (DCF) Analysis Levered

Applied Materials, Inc. (AMAT)

$118.8

-1.18 (-0.98%)
All numbers are in Millions, Currency in USD
Stock DCF: 96.02 | 118.8 | overvalue

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 17,25314,60817,20223,06325,78528,898.5932,388.1536,299.0940,682.2745,594.74
Revenue (%)
Operating Cash Flow 3,7873,2473,8045,4425,3996,405.427,178.898,045.759,017.2910,106.15
Operating Cash Flow (%)
Capital Expenditure -622-441-422-668-787-868.45-973.32-1,090.85-1,222.57-1,370.20
Capital Expenditure (%)
Free Cash Flow 3,1652,8063,3824,7744,6125,536.976,205.576,954.907,794.728,735.95

Weighted Average Cost Of Capital

Share price $ 118.8
Beta 1.571
Diluted Shares Outstanding 877
Cost of Debt
Tax Rate 14.13
After-tax Cost of Debt 3.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.033
Total Debt 5,457
Total Equity 104,187.60
Total Capital 109,644.60
Debt Weighting 4.98
Equity Weighting 95.02
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 17,25314,60817,20223,06325,78528,898.5932,388.1536,299.0940,682.2745,594.74
Operating Cash Flow 3,7873,2473,8045,4425,3996,405.427,178.898,045.759,017.2910,106.15
Capital Expenditure -622-441-422-668-787-868.45-973.32-1,090.85-1,222.57-1,370.20
Free Cash Flow 3,1652,8063,3824,7744,6125,536.976,205.576,954.907,794.728,735.95
WACC
PV LFCF 3,015.283,053.843,092.903,132.453,172.51
SUM PV LFCF 25,666.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.66
Free cash flow (t + 1) 8,910.67
Terminal Value 102,894.57
Present Value of Terminal Value 62,006.77

Intrinsic Value

Enterprise Value 87,672.83
Net Debt 3,462
Equity Value 84,210.83
Shares Outstanding 877
Equity Value Per Share 96.02