Discounted Cash Flow (DCF) Analysis Levered

KLA Corporation (KLAC)

$330.09

-11.09 (-3.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 370.66 | 330.09 | undervalue

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 3,480.014,036.704,568.905,806.426,918.738,223.319,773.8811,616.8213,807.2616,410.73
Revenue (%)
Operating Cash Flow 1,079.671,229.121,152.631,778.852,185.032,449.202,911.023,459.924,112.314,887.72
Operating Cash Flow (%)
Capital Expenditure -38.59-66.96-130.50-152.67-231.63-190.80-226.78-269.54-320.36-380.77
Capital Expenditure (%)
Free Cash Flow 1,041.071,162.161,022.131,626.171,953.402,258.402,684.243,190.373,791.944,506.94

Weighted Average Cost Of Capital

Share price $ 330.09
Beta 1.281
Diluted Shares Outstanding 155.44
Cost of Debt
Tax Rate 11.95
After-tax Cost of Debt 3.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.805
Total Debt 3,545.83
Total Equity 51,308.20
Total Capital 54,854.03
Debt Weighting 6.46
Equity Weighting 93.54
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 3,480.014,036.704,568.905,806.426,918.738,223.319,773.8811,616.8213,807.2616,410.73
Operating Cash Flow 1,079.671,229.121,152.631,778.852,185.032,449.202,911.023,459.924,112.314,887.72
Capital Expenditure -38.59-66.96-130.50-152.67-231.63-190.80-226.78-269.54-320.36-380.77
Free Cash Flow 1,041.071,162.161,022.131,626.171,953.402,258.402,684.243,190.373,791.944,506.94
WACC
PV LFCF 2,081.672,280.562,498.462,737.182,998.70
SUM PV LFCF 12,596.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.49
Free cash flow (t + 1) 4,597.08
Terminal Value 70,833.33
Present Value of Terminal Value 47,129.09

Intrinsic Value

Enterprise Value 59,725.67
Net Debt 2,111.22
Equity Value 57,614.45
Shares Outstanding 155.44
Equity Value Per Share 370.66