Discounted Cash Flow (DCF) Analysis Levered

Texas Instruments Incorporated (TXN)

$ 196.39
-2.64 (-1.33%)
Stock DCF: 641.39 | 196.39 | undervalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 13,37014,96115,78414,38314,46114,788.7915,124.0215,466.8415,817.4316,175.98
Revenue (%)
Operating Cash Flow 4,6145,3637,1896,6496,1396,051.076,188.246,328.516,471.966,618.66
Operating Cash Flow (%)
Capital Expenditure -531-695-1,131-847-649-773.73-791.27-809.20-827.55-846.30
Capital Expenditure (%)
Free Cash Flow 4,0834,6686,0585,8025,4905,277.345,396.975,519.305,644.415,772.36

Weighted Average Cost Of Capital

Share price $ 196.39
Beta 0.938
Diluted Shares Outstanding 933
Cost of Debt
Tax Rate 7.01
After-tax Cost of Debt 2.51%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.912
Total Debt 7,047
Total Equity 183,231.87
Total Capital 190,278.87
Debt Weighting 3.70
Equity Weighting 96.30
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 13,37014,96115,78414,38314,46114,788.7915,124.0215,466.8415,817.4316,175.98
Operating Cash Flow 4,6145,3637,1896,6496,1396,051.076,188.246,328.516,471.966,618.66
Capital Expenditure -531-695-1,131-847-649-773.73-791.27-809.20-827.55-846.30
Free Cash Flow 4,0834,6686,0585,8025,4905,277.345,396.975,519.305,644.415,772.36
WACC
PV LFCF 4,457.404,308.954,165.444,026.723,892.61
SUM PV LFCF 23,335.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.79
Free cash flow (t + 1) 6,060.97
Terminal Value 767,211.89
Present Value of Terminal Value 579,018.23

Intrinsic Value

Enterprise Value 602,353.81
Net Debt 3,940
Equity Value 598,413.81
Shares Outstanding 933
Equity Value Per Share 641.39