Discounted Cash Flow (DCF) Analysis Levered

Photronics, Inc. (PLAB)

$18.795

-0.16 (-0.82%)

All numbers are in Millions, Currency in USD

Stock DCF: 19.06 | 18.795 | undervalue

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	535.28	550.66	609.69	663.76	824.55	920.79	1,028.26	1,148.27	1,282.29	1,431.96
Revenue (%)
Operating Cash Flow	130.57	68.39	143.05	150.77	275.19	214.29	239.30	267.23	298.42	333.25
Operating Cash Flow (%)
Capital Expenditure	-92.80	-178.47	-70.97	-109.27	-112.34	-168.46	-188.12	-210.08	-234.59	-261.98
Capital Expenditure (%)
Free Cash Flow	37.76	-110.08	72.07	41.50	162.85	45.83	51.18	57.16	63.83	71.28

Weighted Average Cost Of Capital

Share price	$ 18.795
Beta	1.199
Diluted Shares Outstanding	61.19
Cost of Debt
Tax Rate	50.31
After-tax Cost of Debt	2.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.301
Total Debt	42.33
Total Equity	1,150.05
Total Capital	1,192.38
Debt Weighting	3.55
Equity Weighting	96.45
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	535.28	550.66	609.69	663.76	824.55	920.79	1,028.26	1,148.27	1,282.29	1,431.96
Operating Cash Flow	130.57	68.39	143.05	150.77	275.19	214.29	239.30	267.23	298.42	333.25
Capital Expenditure	-92.80	-178.47	-70.97	-109.27	-112.34	-168.46	-188.12	-210.08	-234.59	-261.98
Free Cash Flow	37.76	-110.08	72.07	41.50	162.85	45.83	51.18	57.16	63.83	71.28
WACC
PV LFCF						42.03	43.04	44.07	45.13	46.22
SUM PV LFCF										220.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.05
Free cash flow (t + 1)	72.70
Terminal Value	1,031.23
Present Value of Terminal Value	668.69

Intrinsic Value

Enterprise Value	889.18
Net Debt	-277.35
Equity Value	1,166.53
Shares Outstanding	61.19
Equity Value Per Share	19.06