Discounted Cash Flow (DCF) Analysis Levered

Magnachip Semiconductor Corporation (MX)

$11.22

+0.55 (+5.15%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.85 | 11.22 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	792.20	507.06	474.23	337.66	257.45	196.29	149.66	114.11	87	66.33
Revenue (%)
Operating Cash Flow	50.50	7.47	87.74	5.16	17.94	13.68	10.43	7.95	6.06	4.62
Operating Cash Flow (%)
Capital Expenditure	-24.06	-36.84	-32.83	-23.78	-15.62	-11.91	-9.08	-6.92	-5.28	-4.02
Capital Expenditure (%)
Free Cash Flow	26.44	-29.37	54.92	-18.62	2.32	1.77	1.35	1.03	0.79	0.60

Weighted Average Cost Of Capital

Share price	$ 11.22
Beta	0.975
Diluted Shares Outstanding	44.85
Cost of Debt
Tax Rate	-179.12
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.349
Total Debt	5.62
Total Equity	503.23
Total Capital	508.84
Debt Weighting	1.10
Equity Weighting	98.90
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	792.20	507.06	474.23	337.66	257.45	196.29	149.66	114.11	87	66.33
Operating Cash Flow	50.50	7.47	87.74	5.16	17.94	13.68	10.43	7.95	6.06	4.62
Capital Expenditure	-24.06	-36.84	-32.83	-23.78	-15.62	-11.91	-9.08	-6.92	-5.28	-4.02
Free Cash Flow	26.44	-29.37	54.92	-18.62	2.32	1.77	1.35	1.03	0.79	0.60
WACC
PV LFCF					1.56	1.10	0.77	0.54	0.38	0.27
SUM PV LFCF										4.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.31
Free cash flow (t + 1)	0.61
Terminal Value	9.68
Present Value of Terminal Value	6.49

Intrinsic Value

Enterprise Value	11.07
Net Debt	-206.47
Equity Value	217.53
Shares Outstanding	44.85
Equity Value Per Share	4.85