Discounted Cash Flow (DCF) Analysis Levered

Rambus Inc. (RMBS)

$64.57

+0.08 (+0.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 60.19 | 64.57 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 224.03242.75328.30454.79461.12557.40673.78814.47984.531,190.10
Revenue (%)
Operating Cash Flow 128.54185.46209.22230.39195.79323.98391.63473.40572.25691.73
Operating Cash Flow (%)
Capital Expenditure -6.47-29.73-13.79-20.48-23.24-32.19-38.92-47.04-56.86-68.74
Capital Expenditure (%)
Free Cash Flow 122.06155.73195.43209.92172.55291.79352.71426.36515.38622.99

Weighted Average Cost Of Capital

Share price $ 64.57
Beta 1.217
Diluted Shares Outstanding 110.89
Cost of Debt
Tax Rate -78.41
After-tax Cost of Debt 4.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.947
Total Debt 30.71
Total Equity 7,160.10
Total Capital 7,190.81
Debt Weighting 0.43
Equity Weighting 99.57
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 224.03242.75328.30454.79461.12557.40673.78814.47984.531,190.10
Operating Cash Flow 128.54185.46209.22230.39195.79323.98391.63473.40572.25691.73
Capital Expenditure -6.47-29.73-13.79-20.48-23.24-32.19-38.92-47.04-56.86-68.74
Free Cash Flow 122.06155.73195.43209.92172.55291.79352.71426.36515.38622.99
WACC
PV LFCF 165.34181.81199.92219.83241.73
SUM PV LFCF 1,619.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.93
Free cash flow (t + 1) 635.45
Terminal Value 8,013.30
Present Value of Terminal Value 4,991.49

Intrinsic Value

Enterprise Value 6,610.70
Net Debt -64.06
Equity Value 6,674.76
Shares Outstanding 110.89
Equity Value Per Share 60.19