Discounted Cash Flow (DCF) Analysis Levered

MACOM Technology Solutions Holdings... (MTSI)

$60.09

-1.01 (-1.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.43 | 60.09 | 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	570.40	499.71	530.04	606.92	675.17	707.96	742.34	778.40	816.20	855.84
Revenue (%)
Operating Cash Flow	36.29	20.70	171.40	148.41	176.98	132.40	138.83	145.57	152.64	160.06
Operating Cash Flow (%)
Capital Expenditure	-53.04	-37.96	-17.57	-17.95	-26.51	-38.37	-40.23	-42.18	-44.23	-46.38
Capital Expenditure (%)
Free Cash Flow	-16.75	-17.26	153.82	130.46	150.47	94.03	98.60	103.39	108.41	113.68

Weighted Average Cost Of Capital

Share price	$ 60.09
Beta	1.853
Diluted Shares Outstanding	70.47
Cost of Debt
Tax Rate	-80.96
After-tax Cost of Debt	0.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.447
Total Debt	600.43
Total Equity	4,234.78
Total Capital	4,835.22
Debt Weighting	12.42
Equity Weighting	87.58
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	570.40	499.71	530.04	606.92	675.17	707.96	742.34	778.40	816.20	855.84
Operating Cash Flow	36.29	20.70	171.40	148.41	176.98	132.40	138.83	145.57	152.64	160.06
Capital Expenditure	-53.04	-37.96	-17.57	-17.95	-26.51	-38.37	-40.23	-42.18	-44.23	-46.38
Free Cash Flow	-16.75	-17.26	153.82	130.46	150.47	94.03	98.60	103.39	108.41	113.68
WACC
PV LFCF						84.72	80.04	75.62	71.44	67.49
SUM PV LFCF										379.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.99
Free cash flow (t + 1)	115.95
Terminal Value	1,289.75
Present Value of Terminal Value	765.75

Intrinsic Value

Enterprise Value	1,145.06
Net Debt	480.48
Equity Value	664.58
Shares Outstanding	70.47
Equity Value Per Share	9.43