Discounted Cash Flow (DCF) Analysis Levered

Lam Research Corporation (LRCX)

$394.83

-31.32 (-7.35%)
All numbers are in Millions, Currency in USD
Stock DCF: 623.15 | 394.83 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 11,0779,653.5610,044.7414,626.1516,420.8718,435.8120,69823,237.7726,089.1929,290.49
Revenue (%)
Operating Cash Flow 2,655.753,176.012,126.453,588.164,211.034,727.755,307.885,959.196,690.417,511.37
Operating Cash Flow (%)
Capital Expenditure -273.47-303.49-203.24-349.10-411.46-461.94-518.63-582.27-653.71-733.93
Capital Expenditure (%)
Free Cash Flow 2,382.282,872.521,923.213,239.073,799.584,265.814,789.255,376.926,036.706,777.44

Weighted Average Cost Of Capital

Share price $ 394.83
Beta 1.269
Diluted Shares Outstanding 145.32
Cost of Debt
Tax Rate 10.58
After-tax Cost of Debt 4.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.879
Total Debt 5,000.66
Total Equity 57,376.70
Total Capital 62,377.35
Debt Weighting 8.02
Equity Weighting 91.98
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 11,0779,653.5610,044.7414,626.1516,420.8718,435.8120,69823,237.7726,089.1929,290.49
Operating Cash Flow 2,655.753,176.012,126.453,588.164,211.034,727.755,307.885,959.196,690.417,511.37
Capital Expenditure -273.47-303.49-203.24-349.10-411.46-461.94-518.63-582.27-653.71-733.93
Free Cash Flow 2,382.282,872.521,923.213,239.073,799.584,265.814,789.255,376.926,036.706,777.44
WACC
PV LFCF 3,225.793,336.973,451.983,570.963,694.033,821.35
SUM PV LFCF 21,054.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.53
Free cash flow (t + 1) 6,912.99
Terminal Value 105,865.07
Present Value of Terminal Value 70,307.82

Intrinsic Value

Enterprise Value 91,362.70
Net Debt 805.94
Equity Value 90,556.76
Shares Outstanding 145.32
Equity Value Per Share 623.15