Discounted Cash Flow (DCF) Analysis Levered

Qorvo, Inc. (QRVO)

$108.12

+5.60 (+5.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 127.47 | 108.12 | undervalue

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 3,032.572,973.543,090.323,239.144,015.314,324.074,656.575,014.655,400.255,815.51
Revenue (%)
Operating Cash Flow 776.82852.52810.36945.651,301.851,229.121,323.631,425.421,535.031,653.06
Operating Cash Flow (%)
Capital Expenditure -552.70-269.84-220.94-164.10-186.96-382-411.38-443.01-477.08-513.76
Capital Expenditure (%)
Free Cash Flow 224.12582.68589.43781.541,114.89847.12912.26982.401,057.951,139.30

Weighted Average Cost Of Capital

Share price $ 108.12
Beta 1.368
Diluted Shares Outstanding 116.02
Cost of Debt
Tax Rate 9.14
After-tax Cost of Debt 3.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.426
Total Debt 1,747.64
Total Equity 12,543.65
Total Capital 14,291.29
Debt Weighting 12.23
Equity Weighting 87.77
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 3,032.572,973.543,090.323,239.144,015.314,324.074,656.575,014.655,400.255,815.51
Operating Cash Flow 776.82852.52810.36945.651,301.851,229.121,323.631,425.421,535.031,653.06
Capital Expenditure -552.70-269.84-220.94-164.10-186.96-382-411.38-443.01-477.08-513.76
Free Cash Flow 224.12582.68589.43781.541,114.89847.12912.26982.401,057.951,139.30
WACC
PV LFCF 658.65652.23645.87639.57633.33
SUM PV LFCF 3,819.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.75
Free cash flow (t + 1) 1,162.09
Terminal Value 17,216.07
Present Value of Terminal Value 11,318.47

Intrinsic Value

Enterprise Value 15,138.04
Net Debt 349.76
Equity Value 14,788.28
Shares Outstanding 116.02
Equity Value Per Share 127.47