Discounted Cash Flow (DCF) Analysis Levered

Applied Materials, Inc. (AMAT)

$209.49

-0.76 (-0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 146.85 | 209.49 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 14,60817,20223,06325,78526,51730,923.4836,062.2242,054.8949,043.3957,193.22
Revenue (%)
Operating Cash Flow 3,2473,8045,4425,3998,7007,525.868,776.4710,234.9111,935.7113,919.13
Operating Cash Flow (%)
Capital Expenditure -441-422-668-787-1,106-964.29-1,124.53-1,311.40-1,529.33-1,783.47
Capital Expenditure (%)
Free Cash Flow 2,8063,3824,7744,6127,5946,561.577,651.948,923.5110,406.3812,135.67

Weighted Average Cost Of Capital

Share price $ 209.49
Beta 1.593
Diluted Shares Outstanding 845
Cost of Debt
Tax Rate 11.15
After-tax Cost of Debt 3.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.729
Total Debt 5,561
Total Equity 177,019.05
Total Capital 182,580.05
Debt Weighting 3.05
Equity Weighting 96.95
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 14,60817,20223,06325,78526,51730,923.4836,062.2242,054.8949,043.3957,193.22
Operating Cash Flow 3,2473,8045,4425,3998,7007,525.868,776.4710,234.9111,935.7113,919.13
Capital Expenditure -441-422-668-787-1,106-964.29-1,124.53-1,311.40-1,529.33-1,783.47
Free Cash Flow 2,8063,3824,7744,6127,5946,561.577,651.948,923.5110,406.3812,135.67
WACC
PV LFCF 5,885.346,156.026,439.146,735.287,045.05
SUM PV LFCF 32,260.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.49
Free cash flow (t + 1) 12,560.42
Terminal Value 157,201.69
Present Value of Terminal Value 91,259.41

Intrinsic Value

Enterprise Value 123,520.24
Net Debt -571
Equity Value 124,091.24
Shares Outstanding 845
Equity Value Per Share 146.85