Discounted Cash Flow (DCF) Analysis Levered

Micron Technology, Inc. (MU)

$60.4

-2.01 (-3.22%)
All numbers are in Millions, Currency in USD
Stock DCF: 50.52 | 60.4 | 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 30,39123,40621,43527,70530,75831,439.7732,136.6432,848.9733,577.0834,321.34
Revenue (%)
Operating Cash Flow 17,40013,1898,30612,46815,18115,513.0915,856.9416,208.4216,567.6916,934.92
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 8,5213,409832,4383,1143,893.113,979.404,067.614,157.774,249.93

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 30,39123,40621,43527,70530,75831,439.7732,136.6432,848.9733,577.0834,321.34
Operating Cash Flow 17,40013,1898,30612,46815,18115,513.0915,856.9416,208.4216,567.6916,934.92
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 8,5213,409832,4383,1143,893.113,979.404,067.614,157.774,249.93
WACC
PV LFCF 2,320.062,175.472,039.901,912.771,793.57
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