Discounted Cash Flow (DCF) Analysis Levered

InterDigital, Inc. (IDCC)

$73.49

+3.65 (+5.23%)

All numbers are in Millions, Currency in USD

Stock DCF: 67.24 | 73.49 | 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	532.94	307.40	318.92	358.99	425.41	417.43	409.59	401.90	394.36	386.96
Revenue (%)
Operating Cash Flow	315.80	146.79	89.43	163.47	130.39	176.35	173.04	169.79	166.61	163.48
Operating Cash Flow (%)
Capital Expenditure	-37	-36.90	-37.99	-42.41	-38.28	-43.14	-42.33	-41.53	-40.75	-39.99
Capital Expenditure (%)
Free Cash Flow	278.80	109.90	51.44	121.06	92.12	133.22	130.72	128.26	125.86	123.49

Weighted Average Cost Of Capital

Share price	$ 73.49
Beta	1.110
Diluted Shares Outstanding	31.25
Cost of Debt
Tax Rate	3.93
After-tax Cost of Debt	5.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.914
Total Debt	422.75
Total Equity	2,296.78
Total Capital	2,719.53
Debt Weighting	15.54
Equity Weighting	84.46
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	532.94	307.40	318.92	358.99	425.41	417.43	409.59	401.90	394.36	386.96
Operating Cash Flow	315.80	146.79	89.43	163.47	130.39	176.35	173.04	169.79	166.61	163.48
Capital Expenditure	-37	-36.90	-37.99	-42.41	-38.28	-43.14	-42.33	-41.53	-40.75	-39.99
Free Cash Flow	278.80	109.90	51.44	121.06	92.12	133.22	130.72	128.26	125.86	123.49
WACC
PV LFCF						82.02	74.23	67.18	60.80	55.02
SUM PV LFCF										508.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.42
Free cash flow (t + 1)	125.96
Terminal Value	1,962.04
Present Value of Terminal Value	1,309.67

Intrinsic Value

Enterprise Value	1,817.90
Net Debt	-283.54
Equity Value	2,101.43
Shares Outstanding	31.25
Equity Value Per Share	67.24