Discounted Cash Flow (DCF) Analysis Levered

Photronics, Inc. (PLAB)

$18.65

-0.04 (-0.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.61 | 18.65 | 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	450.68	535.28	550.66	609.69	663.76	732.18	807.66	890.92	982.76	1,084.07
Revenue (%)
Operating Cash Flow	96.83	130.57	68.39	143.05	150.77	152.99	168.76	186.16	205.35	226.51
Operating Cash Flow (%)
Capital Expenditure	-92.80	-92.80	-178.47	-70.97	-109.27	-144.15	-159.02	-175.41	-193.49	-213.43
Capital Expenditure (%)
Free Cash Flow	4.03	37.76	-110.08	72.07	41.50	8.83	9.74	10.75	11.86	13.08

Weighted Average Cost Of Capital

Share price	$ 18.65
Beta	1.125
Diluted Shares Outstanding	62
Cost of Debt
Tax Rate	45.64
After-tax Cost of Debt	0.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.015
Total Debt	113.97
Total Equity	1,156.28
Total Capital	1,270.25
Debt Weighting	8.97
Equity Weighting	91.03
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	450.68	535.28	550.66	609.69	663.76	732.18	807.66	890.92	982.76	1,084.07
Operating Cash Flow	96.83	130.57	68.39	143.05	150.77	152.99	168.76	186.16	205.35	226.51
Capital Expenditure	-92.80	-92.80	-178.47	-70.97	-109.27	-144.15	-159.02	-175.41	-193.49	-213.43
Free Cash Flow	4.03	37.76	-110.08	72.07	41.50	8.83	9.74	10.75	11.86	13.08
WACC
PV LFCF						8.16	8.31	8.47	8.63	8.79
SUM PV LFCF										42.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.28
Free cash flow (t + 1)	13.34
Terminal Value	212.44
Present Value of Terminal Value	142.72

Intrinsic Value

Enterprise Value	185.07
Net Debt	-162.70
Equity Value	347.77
Shares Outstanding	62
Equity Value Per Share	5.61