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 792.20507.06474.23337.66257.45196.29149.66114.118766.33
Revenue (%)
Operating Cash Flow 50.507.4787.745.1617.9413.6810.437.956.064.62
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 26.44-29.3754.92-18.622.321.771.351.030.790.60

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 792.20507.06474.23337.66257.45196.29149.66114.118766.33
Operating Cash Flow 50.507.4787.745.1617.9413.6810.437.956.064.62
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 26.44-29.3754.92-18.622.321.771.351.030.790.60
WACC
PV LFCF 1.561.100.770.540.380.27
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