Discounted Cash Flow (DCF) Analysis Levered

Microchip Technology Incorporated (MCHP)

$75.67

-0.95 (-1.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 74.02 | 75.67 | overvalue

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 3,980.805,349.505,274.205,438.406,820.907,869.779,079.9310,476.1812,087.1413,945.81
Revenue (%)
Operating Cash Flow 1,419.601,674.801,543.801,916.502,842.702,725.403,144.493,628.034,185.924,829.60
Operating Cash Flow (%)
Capital Expenditure -206.80-228.90-67.60-92.60-370.10-281.49-324.78-374.72-432.34-498.82
Capital Expenditure (%)
Free Cash Flow 1,212.801,445.901,476.201,823.902,472.602,443.912,819.713,253.313,753.584,330.78

Weighted Average Cost Of Capital

Share price $ 75.67
Beta 1.509
Diluted Shares Outstanding 565.90
Cost of Debt
Tax Rate 13.29
After-tax Cost of Debt 2.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.815
Total Debt 7,850.10
Total Equity 42,821.65
Total Capital 50,671.75
Debt Weighting 15.49
Equity Weighting 84.51
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 3,980.805,349.505,274.205,438.406,820.907,869.779,079.9310,476.1812,087.1413,945.81
Operating Cash Flow 1,419.601,674.801,543.801,916.502,842.702,725.403,144.493,628.034,185.924,829.60
Capital Expenditure -206.80-228.90-67.60-92.60-370.10-281.49-324.78-374.72-432.34-498.82
Free Cash Flow 1,212.801,445.901,476.201,823.902,472.602,443.912,819.713,253.313,753.584,330.78
WACC
PV LFCF 2,230.662,349.102,473.832,605.182,743.51
SUM PV LFCF 12,402.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.56
Free cash flow (t + 1) 4,417.40
Terminal Value 58,431.21
Present Value of Terminal Value 37,015.59

Intrinsic Value

Enterprise Value 49,417.87
Net Debt 7,532.70
Equity Value 41,885.17
Shares Outstanding 565.90
Equity Value Per Share 74.02