Discounted Cash Flow (DCF) Analysis Levered
Teradyne, Inc. (TER)
$103.07
+1.55 (+1.53%)
All numbers are in Millions, Currency in USD
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 | 2,100.80 | 2,294.96 | 3,121.47 | 3,702.88 | 3,155.04 | 3,542.23 | 3,976.93 | 4,464.97 | 5,012.90 | 5,628.08 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 476.88 | 578.75 | 868.93 | 1,098.37 | 577.92 | 876.60 | 984.17 | 1,104.95 | 1,240.55 | 1,392.79 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -114.38 | -134.64 | -184.98 | -132.47 | -163.25 | -184.12 | -206.71 | -232.08 | -260.56 | -292.54 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 362.50 | 444.11 | 683.96 | 965.89 | 414.67 | 692.48 | 777.46 | 872.87 | 979.99 | 1,100.25 |
Weighted Average Cost Of Capital
| Share price | $ 103.07 |
|---|---|
| Beta | 1.539 |
| Diluted Shares Outstanding | 169.73 |
| Cost of Debt | |
| Tax Rate | 14.86 |
| After-tax Cost of Debt | 5.41% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.972 |
| Total Debt | 132.88 |
| Total Equity | 17,494.48 |
| Total Capital | 17,627.37 |
| Debt Weighting | 0.75 |
| Equity Weighting | 99.25 |
| 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 | 2,100.80 | 2,294.96 | 3,121.47 | 3,702.88 | 3,155.04 | 3,542.23 | 3,976.93 | 4,464.97 | 5,012.90 | 5,628.08 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 476.88 | 578.75 | 868.93 | 1,098.37 | 577.92 | 876.60 | 984.17 | 1,104.95 | 1,240.55 | 1,392.79 |
| Capital Expenditure | -114.38 | -134.64 | -184.98 | -132.47 | -163.25 | -184.12 | -206.71 | -232.08 | -260.56 | -292.54 |
| Free Cash Flow | 362.50 | 444.11 | 683.96 | 965.89 | 414.67 | 692.48 | 777.46 | 872.87 | 979.99 | 1,100.25 |
| WACC | ||||||||||
| PV LFCF | 624.25 | 631.80 | 639.44 | 647.18 | 655.01 | |||||
| SUM PV LFCF | 3,197.68 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.93 |
| Free cash flow (t + 1) | 1,122.25 |
| Terminal Value | 12,567.24 |
| Present Value of Terminal Value | 7,481.60 |
Intrinsic Value
| Enterprise Value | 10,679.28 |
|---|---|
| Net Debt | -721.89 |
| Equity Value | 11,401.17 |
| Shares Outstanding | 169.73 |
| Equity Value Per Share | 67.17 |