Discounted Cash Flow (DCF) Analysis Levered

Semtech Corporation (SMTC)

$55.74

-0.47 (-0.84%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.93 | 55.74 | 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 587.85627.20547.51595.12740.86791.19844.93902.33963.631,029.09
Revenue (%)
Operating Cash Flow 111.49183.56118.62118.93203.12185.61198.22211.68226.06241.42
Operating Cash Flow (%)
Capital Expenditure -35.46-17.05-23.06-32.73-26.18-34.81-37.17-39.70-42.39-45.27
Capital Expenditure (%)
Free Cash Flow 76.02166.5195.5686.20176.94150.80161.05171.99183.67196.15

Weighted Average Cost Of Capital

Share price $ 55.74
Beta 1.539
Diluted Shares Outstanding 66.06
Cost of Debt
Tax Rate 9.64
After-tax Cost of Debt 2.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.104
Total Debt 175.65
Total Equity 3,682.13
Total Capital 3,857.78
Debt Weighting 4.55
Equity Weighting 95.45
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 587.85627.20547.51595.12740.86791.19844.93902.33963.631,029.09
Operating Cash Flow 111.49183.56118.62118.93203.12185.61198.22211.68226.06241.42
Capital Expenditure -35.46-17.05-23.06-32.73-26.18-34.81-37.17-39.70-42.39-45.27
Free Cash Flow 76.02166.5195.5686.20176.94150.80161.05171.99183.67196.15
WACC
PV LFCF 125.18121.79118.50115.30112.18
SUM PV LFCF 650.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.76
Free cash flow (t + 1) 200.07
Terminal Value 2,578.25
Present Value of Terminal Value 1,618.47

Intrinsic Value

Enterprise Value 2,269.29
Net Debt -103.95
Equity Value 2,373.24
Shares Outstanding 66.06
Equity Value Per Share 35.93