Discounted Cash Flow (DCF) Analysis Levered
Lam Research Corporation (LRCX)
$617.06
+2.52 (+0.41%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 10,044.74 | 14,626.15 | 17,227.04 | 22,687.37 | 29,878.42 | 39,348.77 | 51,820.86 | 68,246.15 | 89,877.64 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||
| Operating Cash Flow | 2,126.45 | 3,588.16 | 3,099.67 | 4,816.94 | 6,343.73 | 8,354.45 | 11,002.50 | 14,489.88 | 19,082.64 |
| Operating Cash Flow (%) | |||||||||
| Capital Expenditure | -203.24 | -349.10 | -546.03 | -573.22 | -754.90 | -994.18 | -1,309.30 | -1,724.30 | -2,270.84 |
| Capital Expenditure (%) | |||||||||
| Free Cash Flow | 1,923.21 | 3,239.07 | 2,553.64 | 4,243.72 | 5,588.82 | 7,360.27 | 9,693.20 | 12,765.59 | 16,811.80 |
Weighted Average Cost Of Capital
| Share price | $ 617.06 |
|---|---|
| Beta | 1.505 |
| Diluted Shares Outstanding | 140.63 |
| Cost of Debt | |
| Tax Rate | 11.32 |
| After-tax Cost of Debt | 4.43% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.873 |
| Total Debt | 4,996.92 |
| Total Equity | 86,775.91 |
| Total Capital | 91,772.83 |
| Debt Weighting | 5.44 |
| Equity Weighting | 94.56 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 10,044.74 | 14,626.15 | 17,227.04 | 22,687.37 | 29,878.42 | 39,348.77 | 51,820.86 | 68,246.15 | 89,877.64 |
|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,126.45 | 3,588.16 | 3,099.67 | 4,816.94 | 6,343.73 | 8,354.45 | 11,002.50 | 14,489.88 | 19,082.64 |
| Capital Expenditure | -203.24 | -349.10 | -546.03 | -573.22 | -754.90 | -994.18 | -1,309.30 | -1,724.30 | -2,270.84 |
| Free Cash Flow | 1,923.21 | 3,239.07 | 2,553.64 | 4,243.72 | 5,588.82 | 7,360.27 | 9,693.20 | 12,765.59 | 16,811.80 |
| WACC | |||||||||
| PV LFCF | 4,690.16 | 5,588.82 | 6,659.67 | 7,935.70 | 9,456.23 | 11,268.10 | |||
| SUM PV LFCF | 37,014.60 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.52 |
| Free cash flow (t + 1) | 17,148.04 |
| Terminal Value | 201,268.05 |
| Present Value of Terminal Value | 122,059.18 |
Intrinsic Value
| Enterprise Value | 159,073.78 |
|---|---|
| Net Debt | -308.73 |
| Equity Value | 159,382.51 |
| Shares Outstanding | 140.63 |
| Equity Value Per Share | 1,133.36 |