Discounted Cash Flow (DCF) Analysis Levered
Micron Technology, Inc. (MU)
$60.4
-2.01 (-3.22%)
All numbers are in Millions, Currency in USD
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 | 30,391 | 23,406 | 21,435 | 27,705 | 30,758 | 31,439.77 | 32,136.64 | 32,848.97 | 33,577.08 | 34,321.34 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 17,400 | 13,189 | 8,306 | 12,468 | 15,181 | 15,513.09 | 15,856.94 | 16,208.42 | 16,567.69 | 16,934.92 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -8,879 | -9,780 | -8,223 | -10,030 | -12,067 | -11,619.98 | -11,877.54 | -12,140.81 | -12,409.92 | -12,684.99 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 8,521 | 3,409 | 83 | 2,438 | 3,114 | 3,893.11 | 3,979.40 | 4,067.61 | 4,157.77 | 4,249.93 |
Weighted Average Cost Of Capital
| Share price | $ 60.4 |
|---|---|
| Beta | 1.301 |
| Diluted Shares Outstanding | 1,122 |
| Cost of Debt | |
| Tax Rate | 9.24 |
| After-tax Cost of Debt | 2.28% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.762 |
| Total Debt | 7,516 |
| Total Equity | 67,768.80 |
| Total Capital | 75,284.80 |
| Debt Weighting | 9.98 |
| Equity Weighting | 90.02 |
| 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 | 30,391 | 23,406 | 21,435 | 27,705 | 30,758 | 31,439.77 | 32,136.64 | 32,848.97 | 33,577.08 | 34,321.34 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 17,400 | 13,189 | 8,306 | 12,468 | 15,181 | 15,513.09 | 15,856.94 | 16,208.42 | 16,567.69 | 16,934.92 |
| Capital Expenditure | -8,879 | -9,780 | -8,223 | -10,030 | -12,067 | -11,619.98 | -11,877.54 | -12,140.81 | -12,409.92 | -12,684.99 |
| Free Cash Flow | 8,521 | 3,409 | 83 | 2,438 | 3,114 | 3,893.11 | 3,979.40 | 4,067.61 | 4,157.77 | 4,249.93 |
| WACC | ||||||||||
| PV LFCF | 2,320.06 | 2,175.47 | 2,039.90 | 1,912.77 | 1,793.57 | |||||
| SUM PV LFCF | 15,765.47 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.01 |
| Free cash flow (t + 1) | 4,334.93 |
| Terminal Value | 61,839.21 |
| Present Value of Terminal Value | 40,172.81 |
Intrinsic Value
| Enterprise Value | 55,938.28 |
|---|---|
| Net Debt | -746 |
| Equity Value | 56,684.28 |
| Shares Outstanding | 1,122 |
| Equity Value Per Share | 50.52 |