Discounted Cash Flow (DCF) Analysis Levered

Ultra Clean Holdings, Inc. (UCTT)

$34.43

+1.53 (+4.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 85.15 | 34.43 | 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	924.35	1,096.52	1,066.20	1,398.60	2,101.62	2,612.85	3,248.44	4,038.64	5,021.07	6,242.48
Revenue (%)
Operating Cash Flow	48.90	41.71	121	97.30	213.06	196.16	243.88	303.21	376.96	468.66
Operating Cash Flow (%)
Capital Expenditure	-16.15	-26.15	-26.30	-36.40	-59.34	-62.84	-78.12	-97.13	-120.76	-150.13
Capital Expenditure (%)
Free Cash Flow	32.76	15.56	94.70	60.90	153.72	133.32	165.76	206.08	256.21	318.53

Weighted Average Cost Of Capital

Share price	$ 34.43
Beta	1.964
Diluted Shares Outstanding	41.07
Cost of Debt
Tax Rate	22.60
After-tax Cost of Debt	2.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.120
Total Debt	635.21
Total Equity	1,414.18
Total Capital	2,049.39
Debt Weighting	31.00
Equity Weighting	69.00
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	924.35	1,096.52	1,066.20	1,398.60	2,101.62	2,612.85	3,248.44	4,038.64	5,021.07	6,242.48
Operating Cash Flow	48.90	41.71	121	97.30	213.06	196.16	243.88	303.21	376.96	468.66
Capital Expenditure	-16.15	-26.15	-26.30	-36.40	-59.34	-62.84	-78.12	-97.13	-120.76	-150.13
Free Cash Flow	32.76	15.56	94.70	60.90	153.72	133.32	165.76	206.08	256.21	318.53
WACC
PV LFCF						122	138.80	157.91	179.65	204.38
SUM PV LFCF										802.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.28
Free cash flow (t + 1)	324.90
Terminal Value	4,462.94
Present Value of Terminal Value	2,863.64

Intrinsic Value

Enterprise Value	3,666.38
Net Debt	168.76
Equity Value	3,497.63
Shares Outstanding	41.07
Equity Value Per Share	85.15