Discounted Cash Flow (DCF) Analysis Levered

Magnachip Semiconductor Corporation (MX)

$7.98

+0.27 (+3.50%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.30 | 7.98 | 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	750.90	792.20	507.06	474.23	337.66	282.14	235.75	196.99	164.60	137.54
Revenue (%)
Operating Cash Flow	39.24	50.50	7.47	87.74	5.16	18.68	15.61	13.04	10.90	9.11
Operating Cash Flow (%)
Capital Expenditure	-34.19	-24.06	-36.84	-32.83	-23.78	-16.26	-13.59	-11.36	-9.49	-7.93
Capital Expenditure (%)
Free Cash Flow	5.04	26.44	-29.37	54.92	-18.62	2.42	2.02	1.69	1.41	1.18

Weighted Average Cost Of Capital

Share price	$ 7.98
Beta	0.948
Diluted Shares Outstanding	44.85
Cost of Debt
Tax Rate	-179.12
After-tax Cost of Debt	21.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.103
Total Debt	5.49
Total Equity	357.91
Total Capital	363.40
Debt Weighting	1.51
Equity Weighting	98.49
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	750.90	792.20	507.06	474.23	337.66	282.14	235.75	196.99	164.60	137.54
Operating Cash Flow	39.24	50.50	7.47	87.74	5.16	18.68	15.61	13.04	10.90	9.11
Capital Expenditure	-34.19	-24.06	-36.84	-32.83	-23.78	-16.26	-13.59	-11.36	-9.49	-7.93
Free Cash Flow	5.04	26.44	-29.37	54.92	-18.62	2.42	2.02	1.69	1.41	1.18
WACC
PV LFCF						2.21	1.69	1.29	0.99	0.76
SUM PV LFCF										6.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.28
Free cash flow (t + 1)	1.20
Terminal Value	16.51
Present Value of Terminal Value	10.59

Intrinsic Value

Enterprise Value	17.53
Net Debt	-219.99
Equity Value	237.52
Shares Outstanding	44.85
Equity Value Per Share	5.30