Discounted Cash Flow (DCF) Analysis Levered

Marvell Technology, Inc. (MRVL)

$55.01

-3.27 (-5.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 42.08 | 55.01 | overvalue

Free Cash Flow

Year
A/P
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,699.162,968.904,462.385,807.747,558.719,837.5712,803.4816,663.59
Revenue (%)
Operating Cash Flow 360.30817.29819.371,146.801,492.551,942.542,528.193,290.42
Operating Cash Flow (%)
Capital Expenditure -86.63-119.51-187.12-221.24-287.94-374.75-487.74-634.78
Capital Expenditure (%)
Free Cash Flow 273.66697.78632.25925.561,204.611,567.792,040.462,655.63

Weighted Average Cost Of Capital

Share price $ 55.01
Beta 1.192
Diluted Shares Outstanding 796.86
Cost of Debt
Tax Rate 12.92
After-tax Cost of Debt 2.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.513
Total Debt 4,726.48
Total Equity 43,834.99
Total Capital 48,561.47
Debt Weighting 9.73
Equity Weighting 90.27
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
Revenue 2,699.162,968.904,462.385,807.747,558.719,837.5712,803.4816,663.59
Operating Cash Flow 360.30817.29819.371,146.801,492.551,942.542,528.193,290.42
Capital Expenditure -86.63-119.51-187.12-221.24-287.94-374.75-487.74-634.78
Free Cash Flow 273.66697.78632.25925.561,204.611,567.792,040.462,655.63
WACC
PV LFCF 998.961,204.611,452.601,751.632,112.23
SUM PV LFCF 6,455.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.93
Free cash flow (t + 1) 2,708.75
Terminal Value 45,678.69
Present Value of Terminal Value 31,189.09

Intrinsic Value

Enterprise Value 37,644.68
Net Debt 4,112.94
Equity Value 33,531.73
Shares Outstanding 796.86
Equity Value Per Share 42.08