Discounted Cash Flow (DCF) Analysis Levered
Texas Instruments Incorporated (TXN)
$ 196.39
-2.64 (-1.33%)
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 | 13,370 | 14,961 | 15,784 | 14,383 | 14,461 | 14,788.79 | 15,124.02 | 15,466.84 | 15,817.43 | 16,175.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,614 | 5,363 | 7,189 | 6,649 | 6,139 | 6,051.07 | 6,188.24 | 6,328.51 | 6,471.96 | 6,618.66 |
| 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 | 4,083 | 4,668 | 6,058 | 5,802 | 5,490 | 5,277.34 | 5,396.97 | 5,519.30 | 5,644.41 | 5,772.36 |
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 | 13,370 | 14,961 | 15,784 | 14,383 | 14,461 | 14,788.79 | 15,124.02 | 15,466.84 | 15,817.43 | 16,175.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,614 | 5,363 | 7,189 | 6,649 | 6,139 | 6,051.07 | 6,188.24 | 6,328.51 | 6,471.96 | 6,618.66 |
| Capital Expenditure | -531 | -695 | -1,131 | -847 | -649 | -773.73 | -791.27 | -809.20 | -827.55 | -846.30 |
| Free Cash Flow | 4,083 | 4,668 | 6,058 | 5,802 | 5,490 | 5,277.34 | 5,396.97 | 5,519.30 | 5,644.41 | 5,772.36 |
| WACC | ||||||||||
| PV LFCF | 4,457.40 | 4,308.95 | 4,165.44 | 4,026.72 | 3,892.61 | |||||
| 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 |