Discounted Cash Flow (DCF) Analysis Levered

Lam Research Corporation (LRCX)

$474.12

+1.99 (+0.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 637.53 | 474.12 | 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 $ 474.12
Beta 1.247
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 8.673
Total Debt 5,000.66
Total Equity 68,899.12
Total Capital 73,899.78
Debt Weighting 6.77
Equity Weighting 93.23
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 3,799.583,935.614,076.514,222.464,373.644,530.22
SUM PV LFCF 21,138.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.39
Free cash flow (t + 1) 6,912.99
Terminal Value 108,184.49
Present Value of Terminal Value 72,313.42

Intrinsic Value

Enterprise Value 93,451.87
Net Debt 805.94
Equity Value 92,645.93
Shares Outstanding 145.32
Equity Value Per Share 637.53