Discounted Cash Flow (DCF) Analysis Levered
Texas Instruments Incorporated (TXN)
$148.54
-5.11 (-3.33%)
All numbers are in Millions, Currency in USD
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 | 14,961 | 15,784 | 14,383 | 14,461 | 18,344 | 19,445.50 | 20,613.14 | 21,850.89 | 23,162.97 | 24,553.83 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,363 | 7,189 | 6,649 | 6,139 | 8,756 | 8,470.66 | 8,979.30 | 9,518.48 | 10,090.03 | 10,695.90 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -695 | -1,131 | -847 | -649 | -2,462 | -1,384.87 | -1,468.03 | -1,556.18 | -1,649.62 | -1,748.68 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 4,668 | 6,058 | 5,802 | 5,490 | 6,294 | 7,085.79 | 7,511.27 | 7,962.30 | 8,440.41 | 8,947.23 |
Weighted Average Cost Of Capital
| Share price | $ 148.54 |
|---|---|
| Beta | 0.939 |
| Diluted Shares Outstanding | 933 |
| Cost of Debt | |
| Tax Rate | 12.89 |
| After-tax Cost of Debt | 1.97% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.320 |
| Total Debt | 8,124 |
| Total Equity | 138,587.82 |
| Total Capital | 146,711.82 |
| Debt Weighting | 5.54 |
| Equity Weighting | 94.46 |
| 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 | 14,961 | 15,784 | 14,383 | 14,461 | 18,344 | 19,445.50 | 20,613.14 | 21,850.89 | 23,162.97 | 24,553.83 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,363 | 7,189 | 6,649 | 6,139 | 8,756 | 8,470.66 | 8,979.30 | 9,518.48 | 10,090.03 | 10,695.90 |
| Capital Expenditure | -695 | -1,131 | -847 | -649 | -2,462 | -1,384.87 | -1,468.03 | -1,556.18 | -1,649.62 | -1,748.68 |
| Free Cash Flow | 4,668 | 6,058 | 5,802 | 5,490 | 6,294 | 7,085.79 | 7,511.27 | 7,962.30 | 8,440.41 | 8,947.23 |
| WACC | ||||||||||
| PV LFCF | 6,621 | 6,558.18 | 6,495.96 | 6,434.34 | 6,373.29 | |||||
| SUM PV LFCF | 32,482.77 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.02 |
| Free cash flow (t + 1) | 9,126.17 |
| Terminal Value | 181,796.29 |
| Present Value of Terminal Value | 129,497.17 |
Intrinsic Value
| Enterprise Value | 161,979.94 |
|---|---|
| Net Debt | 3,493 |
| Equity Value | 158,486.94 |
| Shares Outstanding | 933 |
| Equity Value Per Share | 169.87 |