Discounted Cash Flow (DCF) Analysis Levered

Nova Ltd. (NVMI)

$112.75

+0.84 (+0.75%)

All numbers are in Millions, Currency in USD

Stock DCF: 111.32 | 112.75 | 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	251.13	224.91	269.40	416.11	570.73	714.78	895.18	1,121.11	1,404.07	1,758.44
Revenue (%)
Operating Cash Flow	36.11	41.20	60.25	132.26	119.54	154.10	192.99	241.70	302.70	379.10
Operating Cash Flow (%)
Capital Expenditure	-3.68	-21.27	-6.44	-4.82	-21.31	-26.02	-32.59	-40.82	-51.12	-64.02
Capital Expenditure (%)
Free Cash Flow	32.43	19.93	53.81	127.45	98.23	128.07	160.40	200.88	251.58	315.07

Weighted Average Cost Of Capital

Share price	$ 112.75
Beta	1.246
Diluted Shares Outstanding	31.87
Cost of Debt
Tax Rate	11.49
After-tax Cost of Debt	3.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.574
Total Debt	246.06
Total Equity	3,593.34
Total Capital	3,839.40
Debt Weighting	6.41
Equity Weighting	93.59
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	251.13	224.91	269.40	416.11	570.73	714.78	895.18	1,121.11	1,404.07	1,758.44
Operating Cash Flow	36.11	41.20	60.25	132.26	119.54	154.10	192.99	241.70	302.70	379.10
Capital Expenditure	-3.68	-21.27	-6.44	-4.82	-21.31	-26.02	-32.59	-40.82	-51.12	-64.02
Free Cash Flow	32.43	19.93	53.81	127.45	98.23	128.07	160.40	200.88	251.58	315.07
WACC
PV LFCF						117.33	134.61	154.43	177.18	203.28
SUM PV LFCF										786.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.16
Free cash flow (t + 1)	321.38
Terminal Value	4,488.49
Present Value of Terminal Value	2,895.89

Intrinsic Value

Enterprise Value	3,682.72
Net Debt	134.94
Equity Value	3,547.78
Shares Outstanding	31.87
Equity Value Per Share	111.32