Discounted Cash Flow (DCF) Analysis Levered
Applied Materials, Inc. (AMAT)
$118.8
-1.18 (-0.98%)
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 | 17,253 | 14,608 | 17,202 | 23,063 | 25,785 | 28,898.59 | 32,388.15 | 36,299.09 | 40,682.27 | 45,594.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,787 | 3,247 | 3,804 | 5,442 | 5,399 | 6,405.42 | 7,178.89 | 8,045.75 | 9,017.29 | 10,106.15 |
| 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 | 3,165 | 2,806 | 3,382 | 4,774 | 4,612 | 5,536.97 | 6,205.57 | 6,954.90 | 7,794.72 | 8,735.95 |
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 | 17,253 | 14,608 | 17,202 | 23,063 | 25,785 | 28,898.59 | 32,388.15 | 36,299.09 | 40,682.27 | 45,594.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,787 | 3,247 | 3,804 | 5,442 | 5,399 | 6,405.42 | 7,178.89 | 8,045.75 | 9,017.29 | 10,106.15 |
| Capital Expenditure | -622 | -441 | -422 | -668 | -787 | -868.45 | -973.32 | -1,090.85 | -1,222.57 | -1,370.20 |
| Free Cash Flow | 3,165 | 2,806 | 3,382 | 4,774 | 4,612 | 5,536.97 | 6,205.57 | 6,954.90 | 7,794.72 | 8,735.95 |
| WACC | ||||||||||
| PV LFCF | 3,015.28 | 3,053.84 | 3,092.90 | 3,132.45 | 3,172.51 | |||||
| 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 |