Discounted Cash Flow (DCF) Analysis Levered

Cree, Inc. (CREE)

$79.12

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: -10.82 | 79.12 | 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 1,473924.901,080903.90525.60422.32339.34272.66219.08176.03
Revenue (%)
Operating Cash Flow 215.90167.36202.30-29-125.5020.6116.5613.3010.698.59
Operating Cash Flow (%)
Capital Expenditure -99.33-195.80-153-244.30-576.40-151-121.33-97.49-78.33-62.94
Capital Expenditure (%)
Free Cash Flow 116.57-28.4549.30-273.30-701.90-130.39-104.77-84.18-67.64-54.35

Weighted Average Cost Of Capital

Share price $ 79.12
Beta 1.439
Diluted Shares Outstanding 112.35
Cost of Debt
Tax Rate -54.00
After-tax Cost of Debt 5.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.757
Total Debt 839.10
Total Equity 8,888.82
Total Capital 9,727.92
Debt Weighting 8.63
Equity Weighting 91.37
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 1,473924.901,080903.90525.60422.32339.34272.66219.08176.03
Operating Cash Flow 215.90167.36202.30-29-125.5020.6116.5613.3010.698.59
Capital Expenditure -99.33-195.80-153-244.30-576.40-151-121.33-97.49-78.33-62.94
Free Cash Flow 116.57-28.4549.30-273.30-701.90-130.39-104.77-84.18-67.64-54.35
WACC
PV LFCF -118.22-86.12-62.73-45.70-33.29
SUM PV LFCF -346.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.30
Free cash flow (t + 1) -55.44
Terminal Value -667.93
Present Value of Terminal Value -409.12

Intrinsic Value

Enterprise Value -755.18
Net Debt 460.10
Equity Value -1,215.28
Shares Outstanding 112.35
Equity Value Per Share -10.82