Discounted Cash Flow (DCF) Analysis Unlevered

Cree, Inc. (CREE)

$79.12

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: -80.93 | 79.12 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,473924.901,080903.90525.60422.32339.34272.66219.08176.03
Revenue (%)
EBITDA 159.65-152.98-218.80-32.70-356.50-82.27-66.11-53.12-42.68-34.29
EBITDA (%)
EBIT 9.14-306.92-362.40-156.60-477.40-147.20-118.28-95.03-76.36-61.36
EBIT (%)
Depreciation 150.51153.94143.60123.90120.9064.9352.1741.9233.6827.06
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 610.94387.091,051.401,251.701,154.60455.12365.69293.83236.10189.71
Total Cash (%)
Account Receivables 156.4388.65129.10120.60102.3054.8744.0935.4328.4722.87
Account Receivables (%)
Inventories 284.38151.64187.40179.10166.6088.3270.9757.0245.8236.81
Inventories (%)
Accounts Payable --90.70106.9044.2040.3132.3926.0220.9116.80
Accounts Payable (%)
Capital Expenditure -99.33-195.80-153-244.30-576.40-151-121.33-97.49-78.33-62.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 79.12
Beta 1.439
Diluted Shares Outstanding 112.35
Cost of Debt
Tax Rate -54.00
After-tax Cost of Debt 5.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.484
Total Debt 839.10
Total Equity 8,888.82
Total Capital 9,727.92
Debt Weighting 8.63
Equity Weighting 91.37
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,473924.901,080903.90525.60422.32339.34272.66219.08176.03
EBITDA 159.65-152.98-218.80-32.70-356.50-82.27-66.11-53.12-42.68-34.29
EBIT 9.14-306.92-362.40-156.60-477.40-147.20-118.28-95.03-76.36-61.36
Tax Rate -2,003.73%-1,490.91%-729.87%-0.68%-54.00%-855.84%-855.84%-855.84%-855.84%-855.84%
EBIAT 192.37-4,882.85-3,007.44-157.67-735.18-1,406.99-1,130.52-908.38-729.89-586.47
Depreciation 150.51153.94143.60123.90120.9064.9352.1741.9233.6827.06
Accounts Receivable -67.78-40.458.5018.3047.4310.788.666.965.59
Inventories -132.75-35.768.3012.5078.2817.3513.9411.209
Accounts Payable ---16.20-62.70-3.89-7.92-6.36-5.11-4.11
Capital Expenditure -99.33-195.80-153-244.30-576.40-151-121.33-97.49-78.33-62.94
UFCF 243.54-4,724.19-3,093.05-245.07-1,222.58-1,371.24-1,179.47-947.71-761.49-611.86
WACC
PV UFCF -1,246.02-973.88-711.06-519.16-379.05
SUM PV UFCF -3,829.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.05
Free cash flow (t + 1) -624.10
Terminal Value -7,752.75
Present Value of Terminal Value -4,802.92

Intrinsic Value

Enterprise Value -8,632.09
Net Debt 460.10
Equity Value -9,092.19
Shares Outstanding 112.35
Equity Value Per Share -80.93