Discounted Cash Flow (DCF) Analysis Levered

II-VI Incorporated (IIVI)

$41.95

+0.30 (+0.72%)
All numbers are in Millions, Currency in USD
Stock DCF: 76.95 | 41.95 | 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 1,158.791,362.502,380.073,105.893,316.624,390.735,812.727,695.2210,187.3913,486.67
Revenue (%)
Operating Cash Flow 161.01178.47297.29574.35413.33618.56818.891,084.101,435.201,900
Operating Cash Flow (%)
Capital Expenditure -153.44-137.12-140.63-146.34-314.33-381.14-504.58-667.99-884.32-1,170.72
Capital Expenditure (%)
Free Cash Flow 7.5841.35156.67428.0299237.42314.32416.11550.87729.28

Weighted Average Cost Of Capital

Share price $ 41.95
Beta 1.449
Diluted Shares Outstanding 115.03
Cost of Debt
Tax Rate 16.70
After-tax Cost of Debt 4.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.345
Total Debt 2,438.21
Total Equity 4,825.68
Total Capital 7,263.89
Debt Weighting 33.57
Equity Weighting 66.43
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 1,158.791,362.502,380.073,105.893,316.624,390.735,812.727,695.2210,187.3913,486.67
Operating Cash Flow 161.01178.47297.29574.35413.33618.56818.891,084.101,435.201,900
Capital Expenditure -153.44-137.12-140.63-146.34-314.33-381.14-504.58-667.99-884.32-1,170.72
Free Cash Flow 7.5841.35156.67428.0299237.42314.32416.11550.87729.28
WACC
PV LFCF 219.31268.18327.95401.03490.40
SUM PV LFCF 1,706.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.26
Free cash flow (t + 1) 743.86
Terminal Value 11,882.81
Present Value of Terminal Value 7,990.59

Intrinsic Value

Enterprise Value 9,697.47
Net Debt 845.84
Equity Value 8,851.62
Shares Outstanding 115.03
Equity Value Per Share 76.95