Discounted Cash Flow (DCF) Analysis Levered

Micron Technology, Inc. (MU)

$91.85

+2.39 (+2.67%)
All numbers are in Millions, Currency in USD
Stock DCF: -6.60 | 91.85 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 23,40621,43527,70530,75815,54014,855.2114,200.5913,574.8212,976.6312,404.79
Revenue (%)
Operating Cash Flow 13,1898,30612,46815,1811,5595,926.925,665.745,416.075,177.414,949.26
Operating Cash Flow (%)
Capital Expenditure -9,855-8,223-10,030-12,067-7,676-6,099.46-5,830.68-5,573.74-5,328.13-5,093.34
Capital Expenditure (%)
Free Cash Flow 3,334832,4383,114-6,117-172.54-164.94-157.67-150.72-144.08

Weighted Average Cost Of Capital

Share price $ 91.85
Beta 1.245
Diluted Shares Outstanding 1,093
Cost of Debt
Tax Rate -3.09
After-tax Cost of Debt 4.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.198
Total Debt 13,933
Total Equity 100,392.05
Total Capital 114,325.05
Debt Weighting 12.19
Equity Weighting 87.81
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 23,40621,43527,70530,75815,54014,855.2114,200.5913,574.8212,976.6312,404.79
Operating Cash Flow 13,1898,30612,46815,1811,5595,926.925,665.745,416.075,177.414,949.26
Capital Expenditure -9,855-8,223-10,030-12,067-7,676-6,099.46-5,830.68-5,573.74-5,328.13-5,093.34
Free Cash Flow 3,334832,4383,114-6,117-172.54-164.94-157.67-150.72-144.08
WACC
PV LFCF -157.60-137.61-120.16-104.92-91.61
SUM PV LFCF -611.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.48
Free cash flow (t + 1) -146.96
Terminal Value -1,964.73
Present Value of Terminal Value -1,249.19

Intrinsic Value

Enterprise Value -1,861.09
Net Debt 5,356
Equity Value -7,217.09
Shares Outstanding 1,093
Equity Value Per Share -6.60