Discounted Cash Flow (DCF) Analysis Levered

Taiwan Semiconductor Manufacturing ... (TSM)

$80.325

+1.08 (+1.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 6,355.71 | 80.325 | 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 977,442.601,031,361.801,069,988.801,339,238.501,587,4151,797,575.042,035,558.472,305,048.842,610,217.422,955,787.67
Revenue (%)
Operating Cash Flow 585,318.20573,954.30615,138.70822,666.191,112,160.691,094,766.291,239,703.901,403,8301,589,684.971,800,145.54
Operating Cash Flow (%)
Capital Expenditure -335,888.50-322,682.20-469,752.10-521,474.50-849,436.40-726,228.75-822,375.17-931,250.54-1,054,540.08-1,194,152.08
Capital Expenditure (%)
Free Cash Flow 249,429.70251,272.10145,386.60301,191.70262,724.29368,537.54417,328.73472,579.45535,144.90605,993.46

Weighted Average Cost Of Capital

Share price $ 80.325
Beta 1.215
Diluted Shares Outstanding 5,186.08
Cost of Debt
Tax Rate 10.66
After-tax Cost of Debt 0.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.200
Total Debt 753,631.90
Total Equity 416,571.55
Total Capital 1,170,203.45
Debt Weighting 64.40
Equity Weighting 35.60
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 977,442.601,031,361.801,069,988.801,339,238.501,587,4151,797,575.042,035,558.472,305,048.842,610,217.422,955,787.67
Operating Cash Flow 585,318.20573,954.30615,138.70822,666.191,112,160.691,094,766.291,239,703.901,403,8301,589,684.971,800,145.54
Capital Expenditure -335,888.50-322,682.20-469,752.10-521,474.50-849,436.40-726,228.75-822,375.17-931,250.54-1,054,540.08-1,194,152.08
Free Cash Flow 249,429.70251,272.10145,386.60301,191.70262,724.29368,537.54417,328.73472,579.45535,144.90605,993.46
WACC
PV LFCF 355,422.45388,154.42423,900.78462,939.13505,572.64
SUM PV LFCF 2,135,989.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.69
Free cash flow (t + 1) 618,113.33
Terminal Value 36,574,753.26
Present Value of Terminal Value 30,513,851.80

Intrinsic Value

Enterprise Value 32,649,841.22
Net Debt -311,358.30
Equity Value 32,961,199.52
Shares Outstanding 5,186.08
Equity Value Per Share 6,355.71