Discounted Cash Flow (DCF) Analysis Levered

Magnachip Semiconductor Corporation (MX)

$19.49

-0.15 (-0.76%)

All numbers are in Millions, Currency in USD

Stock DCF: 6.25 | 19.49 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	679.67	750.90	792.20	507.06	474.23	442.83	413.50	386.12	360.55	336.67
Revenue (%)
Operating Cash Flow	-18.44	39.24	50.50	7.47	87.74	25.56	23.87	22.29	20.81	19.43
Operating Cash Flow (%)
Capital Expenditure	-33.87	-34.19	-24.06	-36.84	-32.83	-23.70	-22.13	-20.67	-19.30	-18.02
Capital Expenditure (%)
Free Cash Flow	-52.31	5.04	26.44	-29.37	54.92	1.86	1.74	1.62	1.51	1.41

Weighted Average Cost Of Capital

Share price	$ 19.49
Beta	1.079
Diluted Shares Outstanding	47.71
Cost of Debt
Tax Rate	23.34
After-tax Cost of Debt	24.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.952
Total Debt	4.28
Total Equity	929.86
Total Capital	934.13
Debt Weighting	0.46
Equity Weighting	99.54
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	679.67	750.90	792.20	507.06	474.23	442.83	413.50	386.12	360.55	336.67
Operating Cash Flow	-18.44	39.24	50.50	7.47	87.74	25.56	23.87	22.29	20.81	19.43
Capital Expenditure	-33.87	-34.19	-24.06	-36.84	-32.83	-23.70	-22.13	-20.67	-19.30	-18.02
Free Cash Flow	-52.31	5.04	26.44	-29.37	54.92	1.86	1.74	1.62	1.51	1.41
WACC
PV LFCF						1.17	1.01	0.87	0.76	0.65
SUM PV LFCF										6.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.03
Free cash flow (t + 1)	1.44
Terminal Value	23.92
Present Value of Terminal Value	16.26

Intrinsic Value

Enterprise Value	22.83
Net Debt	-275.27
Equity Value	298.10
Shares Outstanding	47.71
Equity Value Per Share	6.25