Discounted Cash Flow (DCF) Analysis Unlevered
Cree, Inc. (CREE)
$79.12
0.00 (0.00%)
All numbers are in Millions, Currency in USD
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 | 10.484 |
| 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 | 1,473 | 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 | -1,246.02 | -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 |