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 |