Discounted Cash Flow (DCF) Analysis Levered

Himax Technologies, Inc. (HIMX)

$7.07

-0.09 (-1.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.55 | 7.07 | undervalue

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	723.61	671.83	887.28	1,547.10	1,201.34	1,432.38	1,707.86	2,036.32	2,427.95	2,894.90
Revenue (%)
Operating Cash Flow	4.01	7.66	102.61	388.28	82.91	129.65	154.58	184.31	219.76	262.03
Operating Cash Flow (%)
Capital Expenditure	-50.60	-46.07	-5.87	-8.03	-12.13	-45.95	-54.79	-65.33	-77.89	-92.87
Capital Expenditure (%)
Free Cash Flow	-46.59	-38.42	96.74	380.25	70.78	83.70	99.79	118.99	141.87	169.15

Weighted Average Cost Of Capital

Share price	$ 7.07
Beta	2.133
Diluted Shares Outstanding	174.87
Cost of Debt
Tax Rate	14.31
After-tax Cost of Debt	0.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.759
Total Debt	415.80
Total Equity	1,236.31
Total Capital	1,652.11
Debt Weighting	25.17
Equity Weighting	74.83
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	723.61	671.83	887.28	1,547.10	1,201.34	1,432.38	1,707.86	2,036.32	2,427.95	2,894.90
Operating Cash Flow	4.01	7.66	102.61	388.28	82.91	129.65	154.58	184.31	219.76	262.03
Capital Expenditure	-50.60	-46.07	-5.87	-8.03	-12.13	-45.95	-54.79	-65.33	-77.89	-92.87
Free Cash Flow	-46.59	-38.42	96.74	380.25	70.78	83.70	99.79	118.99	141.87	169.15
WACC
PV LFCF						75.78	81.82	88.33	95.36	102.96
SUM PV LFCF										444.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.44
Free cash flow (t + 1)	172.54
Terminal Value	2,044.27
Present Value of Terminal Value	1,244.24

Intrinsic Value

Enterprise Value	1,688.50
Net Debt	194.22
Equity Value	1,494.28
Shares Outstanding	174.87
Equity Value Per Share	8.55