Discounted Cash Flow (DCF) Analysis Unlevered

Cree, Inc. (CREE)

$79.12

0.00 (-%)

All numbers are in Millions, Currency in USD

Stock DCF: -81.33 | 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	1,473	924.90	1,080	903.90	525.60	422.32	339.34	272.66	219.08	176.03
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	150.51	153.94	143.60	123.90	120.90	64.93	52.17	41.92	33.68	27.06
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	610.94	387.09	1,051.40	1,251.70	1,154.60	455.12	365.69	293.83	236.10	189.71
Total Cash (%)
Account Receivables	156.43	88.65	129.10	120.60	102.30	54.87	44.09	35.43	28.47	22.87
Account Receivables (%)
Inventories	284.38	151.64	187.40	179.10	166.60	88.32	70.97	57.02	45.82	36.81
Inventories (%)
Accounts Payable	-	-	90.70	106.90	44.20	40.31	32.39	26.02	20.91	16.80
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	10.433
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	1,473	924.90	1,080	903.90	525.60	422.32	339.34	272.66	219.08	176.03
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	150.51	153.94	143.60	123.90	120.90	64.93	52.17	41.92	33.68	27.06
Accounts Receivable	-	67.78	-40.45	8.50	18.30	47.43	10.78	8.66	6.96	5.59
Inventories	-	132.75	-35.76	8.30	12.50	78.28	17.35	13.94	11.20	9
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						-1,246.58	-974.76	-712.03	-520.11	-379.92
SUM PV UFCF										-3,833.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.00
Free cash flow (t + 1)	-624.10
Terminal Value	-7,801.20
Present Value of Terminal Value	-4,843.93

Intrinsic Value

Enterprise Value	-8,677.33
Net Debt	460.10
Equity Value	-9,137.43
Shares Outstanding	112.35
Equity Value Per Share	-81.33